From Yahoo Finance: 2025-03-22 09:00:00

Buy now, pay later payment solutions are booming, set to grow by 12.2% to $122.26 billion this year. The U.S. market is expected to hit $184.05 billion by 2030. Major players include Affirm, Afterpay, and Klarna, which is going public. Consumers are flocking to BNPL due to inflation and high interest rates.

BNPL services are popular for allowing equal installment payments interest-free. They’re expanding beyond retail to travel, healthcare, and electronics industries. A March survey found 55% of Americans used BNPL, with 22% owing money. However, issues like overspending and missed payments arise, emphasizing the risks alongside the flexibility.

While BNPL is marketed as a gentler alternative to credit cards, experts warn of increasing similarities. Plans now last longer and charge interest, akin to credit cards. Late fees and debt collection can occur if payments are missed. It’s a slippery slope to financial trouble if consumers aren’t careful with their BNPL usage.



Read more at Yahoo Finance: ‘Ticket to overspending,’ expert says