The scary/sad part of these Buy-Now-Pay-Later (BNPL) schemes is the way they are packaged and shown on apps/websites. Most folks opting-in to BNPL schemes have no idea of all the complications they are unknowingly signing-up for.
“They are burning VC-money to gain customers” is the biggest lie!
They are minting money with opaque/predatory lending practices,
currently possible due to the lack of regulation in NBFC-lending (compared to traditional banking).
The individual is ultimately on the line for anything that goes wrong down the line. Behind the scenes, there’s a loan issued in the name of the buyer/individual which immediately affects their credit-score. Also, in case one later claims a return/refund on the purchase, the seller/marketplace is now free to flag this loan as a default and ruin the individual’s credit-history/score. 
Ever wonder how so many NBFCs are able to generate so many customers to lend to?
BNPL schemes are a major source or such “hidden loans” that provide huge returns to the NBFCs.