📉 Gen Z drowning in debt

AND: More tech news from Meta and Tiktok

Roni Rahman
November 29, 2024

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Greetings! Your latest quick tech update is here 🤖

What’s happening:

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What: Gen Z shoppers are increasingly turning to buy-now-pay-later (BNPL) services to spread out holiday payments, with usage expected to rise 11.4% from last year. Adobe Analytics forecasts $18.5 billion in purchases via BNPL services during the holiday season, fueled by inflation and record-high credit card debt.
Why: BNPL services attract younger consumers with low credit requirements and flexible installment options. However, experts warn these services encourage overspending and complicate debt management, especially when combined with credit card payments that accrue additional interest and fees.
Impact: Rising BNPL usage risks leaving young consumers in deeper financial trouble as debt accumulates unnoticed. Merchants benefit from larger sales, while Gen Z shoppers face growing credit burdens that could worsen financial instability and reliance on debt.

What: Meta plans to invest over $10 billion in a 40,000+ kilometer subsea cable spanning the globe, marking its first fully owned cable project. The route will avoid geopolitical hotspots and prioritize connecting the U.S., India, South Africa, and Australia.
Why: Meta aims to ensure reliable infrastructure for its growing global traffic, driven by increasing demand from its platforms (Facebook, Instagram, WhatsApp) and AI-powered tools. Sole ownership gives Meta control over data flow and quality, particularly in key growth markets like India.
Impact: The project reflects tech companies’ shift toward owning internet infrastructure, reducing reliance on telecoms. This move could enhance service quality and capacity while positioning Meta as a critical player in global connectivity. It may also support future AI developments and data center expansion, particularly in India.

What: TikTok is introducing global age restrictions on beauty filters for users under 18. Filters that dramatically alter appearance, like slimming faces or smoothing skin, will be blocked, while comedic or obvious effects remain accessible.
Why: Reports suggest beauty filters normalize unrealistic beauty standards and amplify mental health challenges, especially for teens unable to discern altered images. The move follows rising concerns about the impact of social media on body image.
Impact: The changes aim to protect younger users' mental well-being, promote healthier self-image, and address criticism of social media's role in fostering beauty-related pressures. Additionally, TikTok plans enhanced moderation tools and local support resources in Europe.

What: Researchers at RMIT University and Indian institutions have developed a gold-based drug that slows tumor growth by 82% in animal studies, significantly outperforming the chemotherapy drug cisplatin. The compound selectively targets cancer cells, minimizing damage to healthy cells.
Why: This gold compound is engineered to inhibit a key enzyme abundant in cancer cells, preventing their growth and reducing drug resistance. It also blocks the formation of new blood vessels (anti-angiogenesis), vital for tumor growth, making it effective against resistant cancers like ovarian and fibrosarcoma.
Impact: The gold-based drug could revolutionize cancer treatment with fewer side effects and higher efficacy. Its stability and precision may pave the way for less toxic and more targeted therapies, addressing challenges like drug resistance and recurrence in aggressive cancers.

What: Australia has passed a law banning kids under 16 from social media platforms like TikTok, Instagram, and Snapchat. Tech companies face fines up to A$50 million ($32.5 million) for non-compliance, with enforcement starting in at least 12 months.
Why: The law aims to tackle social media’s harmful effects on young people’s mental health, a concern widely supported by parents. Critics argue it could violate privacy, be easily bypassed, and push kids to unregulated corners of the web.
Impact: This sets a global precedent, with countries like Norway and the UK considering similar steps. However, privacy issues and enforcement challenges may limit its impact. Australia’s bold move could redefine how children interact with the digital world.

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