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All 21-year-old Taylor Emmi wanted was a cosmetic kit from makeup artist and social media star Jeffree Star after watching a video about the brand on YouTube in October 2019.

So she took the $144 leap, and nearly two years later, she’s shelled out thousands on a makeup brand she normally couldn’t afford thanks to a buy now pay later platform known as Afterpay.

“Obviously I really like the things and want to collect them, but I would have never been able to have half of it without Afterpay,” Emmi said.

Buy now pay later platforms that allow customers to purchase on installment plans are growing in the U.S., and younger Americans seeking new ways to purchase high ticket items like computers and designer clothing with lower wages are obsessed.

While the platforms have existed in the U.S. for years, demand and investor interest in the companies are starting to pick up. Just this week, digital payments company Square said it would purchase Afterpay in a $29 billion all-stock deal. As of June 30, Afterpay served more than 16 million customers and roughly 100,000 merchants.

Apple is also reportedly teaming up with Affirm Holdings Inc.‘s PayBright to launch an installment program for Apple devices bought in Canada, according to Bloomberg. And shares of Affirm, which went public in January, are up about 23% in the last three months as of Friday. Klarna is valued at almost $46 billion and raised $639 million in a funding round led by SoftBank.

And a lot of that interest is coming from the younger generations, millennials and Gen-Zs, who are turning to the various BNPL platforms instead of traditional credit cards with high interest rates.

CNBC interviewed seven Millennial and Gen-Z buy now pay later users for this story. The majority said they were drawn to the platforms for their convenience. At least six were influenced by peers or social media to start using the platforms and the majority started within the last year.

How buy now pay later works

Platforms like Afterpay allow users to make big box purchases like a new MacBook without having to shell out the entire cost upfront. They typically let users pay in four installments over a six-week period. Most also offer a companion app or web browser plug-in to equip payment with the merchant’s website.

User accounts are typically linked to a debit card or bank account, where payments are taken out automatically. They also offer automated reminders when an automatic payment is coming up. As a user makes more on-time purchases with the platform, their spending limit grows. For Emmi, that limit is $2,000 on Afterpay and $1,000 on Klarna.

Many platforms don’t charge interest to the customer, making money mostly off of retailer fees and some late fee charges. Affirm does charge interest. The platforms grew 215% year-over-year within the first two months of 2021, an Adobe analysis suggests. Studies have shown that when consumers pay in installments, they typically spend more.

‘It sounds cheaper’

Many younger consumers say they use buy now pay later because they want new clothing or electronics and don’t have the money, said Joseph Flowers, a full-time content creator. The 22-year-old regularly updates his wardrobe for his social media videos and uses Afterpay when a bill tops $300.

“This generation likes to buy a lot of things,” said Flowers, who started using Afterpay when he was approached for an advertising campaign. “I spend a lot of money, and it makes me feel better when I don’t have to pay it all at once.”

Breaking up costs because it “feels smaller” is not uncommon among younger generations, who struggle to think about or plan for the future, said Sarah Newcomb, a behavioral economist at financial services firm Morningstar. In the U.S., consumers focus on material goods rather than saving, a problem that social media is amplifying, she added.

Chiziterem Ogbonna admits there is a culture on TikTok and social media where people overspend and that is contributing to the growth of buy now pay later among her generation. Many platforms are utilizing TikTok for paid advertising campaigns with influencers, a platform some cash-strapped Millennials and Gen-Zs are also utilizing to crack jokes at the trend.

Eighteen-year-old Ogbonna typically uses Klarna for clothing company Shein purchases over $100 because four payments of $25 “sounds cheaper even though it’s not,” she said. At least four of those interviewed echoed that sentiment.

Some experts say in the wake of the financial crisis, younger generations are steering clear of traditional credit and debit. Emmi, the 21-year-old who works as a bartender and waitress, has two credit cards she rarely uses. She likes not worrying about overusing her credit limit with Klarna or Afterpay because “they don’t know that you owe anything.”

Many younger Americans say they use buy now pay later sparingly. Of those interviewed, at least four said a purchase needs to top $100. Emmi uses Afterpay or Klarma on any purchase she can but cautions overspending, a lesson she learned when she lost her job during Covid-19 and struggled to pay mounting installment bills.

“You want nice things and think ‘I’ll be able to pay for it over time,'” Emmi said. “But a lot of time you do have to scrape to [make a payment].”

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Week in review: The Nasdaq’s worst week since April, three trades, and earnings

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Week in review: The Nasdaq's worst week since April, three trades, and earnings

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Too early to bet against AI trade, State Street suggests 

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Too early to bet against AI trade, State Street suggests 

Momentum and private assets: The trends driving ETFs to record inflows

State Street is reiterating its bullish stance on the artificial intelligence trade despite the Nasdaq’s worst week since April.

Chief Business Officer Anna Paglia said momentum stocks still have legs because investors are reluctant to step away from the growth story that’s driven gains all year.

“How would you not want to participate in the growth of AI technology? Everybody has been waiting for the cycle to change from growth to value. I don’t think it’s happening just yet because of the momentum,” Paglia told CNBC’s “ETF Edge” earlier this week. “I don’t think the rebalancing trade is going to happen until we see a signal from the market indicating a slowdown in these big trends.”

Paglia, who has spent 25 years in the exchange-traded funds industry, sees a higher likelihood that the space will cool off early next year.

“There will be much more focus about the diversification,” she said.

Her firm manages several ETFs with exposure to the technology sector, including the SPDR NYSE Technology ETF, which has gained 38% so far this year as of Friday’s close.

The fund, however, pulled back more than 4% over the past week as investors took profits in AI-linked names. The fund’s second top holding as of Friday’s close is Palantir Technologies, according to State Street’s website. Its stock tumbled more than 11% this week after the company’s earnings report on Monday.

Despite the decline, Paglia reaffirmed her bullish tech view in a statement to CNBC later in the week.

Meanwhile, Todd Rosenbluth suggests a rotation is already starting to grip the market. He points to a renewed appetite for health-care stocks.

“The Health Care Select Sector SPDR Fund… which has been out of favor for much of the year, started a return to favor in October,” the firm’s head of research said in the same interview. “Health care tends to be a more defensive sector, so we’re watching to see if people continue to gravitate towards that as a way of diversifying away from some of those sectors like technology.”

The Health Care Select Sector SPDR Fund, which has been underperforming technology sector this year, is up 5% since Oct. 1. It was also the second-best performing S&P 500 group this week.

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

Neurodiverse professionals may see unique benefits from artificial intelligence tools and agents, research suggests. With AI agent creation booming in 2025, people with conditions like ADHD, autism, dyslexia and more report a more level playing field in the workplace thanks to generative AI.

A recent study from the UK’s Department for Business and Trade found that neurodiverse workers were 25% more satisfied with AI assistants and were more likely to recommend the tool than neurotypical respondents.

“Standing up and walking around during a meeting means that I’m not taking notes, but now AI can come in and synthesize the entire meeting into a transcript and pick out the top-level themes,” said Tara DeZao, senior director of product marketing at enterprise low-code platform provider Pega. DeZao, who was diagnosed with ADHD as an adult, has combination-type ADHD, which includes both inattentive symptoms (time management and executive function issues) and hyperactive symptoms (increased movement).

“I’ve white-knuckled my way through the business world,” DeZao said. “But these tools help so much.”

AI tools in the workplace run the gamut and can have hyper-specific use cases, but solutions like note takers, schedule assistants and in-house communication support are common. Generative AI happens to be particularly adept at skills like communication, time management and executive functioning, creating a built-in benefit for neurodiverse workers who’ve previously had to find ways to fit in among a work culture not built with them in mind.

Because of the skills that neurodiverse individuals can bring to the workplace — hyperfocus, creativity, empathy and niche expertise, just to name a few — some research suggests that organizations prioritizing inclusivity in this space generate nearly one-fifth higher revenue.

AI ethics and neurodiverse workers

“Investing in ethical guardrails, like those that protect and aid neurodivergent workers, is not just the right thing to do,” said Kristi Boyd, an AI specialist with the SAS data ethics practice. “It’s a smart way to make good on your organization’s AI investments.”

Boyd referred to an SAS study which found that companies investing the most in AI governance and guardrails were 1.6 times more likely to see at least double ROI on their AI investments. But Boyd highlighted three risks that companies should be aware of when implementing AI tools with neurodiverse and other individuals in mind: competing needs, unconscious bias and inappropriate disclosure.

“Different neurodiverse conditions may have conflicting needs,” Boyd said. For example, while people with dyslexia may benefit from document readers, people with bipolar disorder or other mental health neurodivergences may benefit from AI-supported scheduling to make the most of productive periods. “By acknowledging these tensions upfront, organizations can create layered accommodations or offer choice-based frameworks that balance competing needs while promoting equity and inclusion,” she explained.

Regarding AI’s unconscious biases, algorithms can (and have been) unintentionally taught to associate neurodivergence with danger, disease or negativity, as outlined in Duke University research. And even today, neurodiversity can still be met with workplace discrimination, making it important for companies to provide safe ways to use these tools without having to unwillingly publicize any individual worker diagnosis.

‘Like somebody turned on the light’

As businesses take accountability for the impact of AI tools in the workplace, Boyd says it’s important to remember to include diverse voices at all stages, implement regular audits and establish safe ways for employees to anonymously report issues.

The work to make AI deployment more equitable, including for neurodivergent people, is just getting started. The nonprofit Humane Intelligence, which focuses on deploying AI for social good, released in early October its Bias Bounty Challenge, where participants can identify biases with the goal of building “more inclusive communication platforms — especially for users with cognitive differences, sensory sensitivities or alternative communication styles.”

For example, emotion AI (when AI identifies human emotions) can help people with difficulty identifying emotions make sense of their meeting partners on video conferencing platforms like Zoom. Still, this technology requires careful attention to bias by ensuring AI agents recognize diverse communication patterns fairly and accurately, rather than embedding harmful assumptions.

DeZao said her ADHD diagnosis felt like “somebody turned on the light in a very, very dark room.”

“One of the most difficult pieces of our hyper-connected, fast world is that we’re all expected to multitask. With my form of ADHD, it’s almost impossible to multitask,” she said.

DeZao says one of AI’s most helpful features is its ability to receive instructions and do its work while the human employee can remain focused on the task at hand. “If I’m working on something and then a new request comes in over Slack or Teams, it just completely knocks me off my thought process,” she said. “Being able to take that request and then outsource it real quick and have it worked on while I continue to work [on my original task] has been a godsend.”

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