Buy now, pay later: Here's what borrowers are spending and buying

The rise of buy now, pay later services, boosted by the pandemic, is projected to lead to $18.5 billion in U.S. consumer spending this holiday season.

Buy now, pay later has become increasingly popular due to changing shopping habits during the pandemic, with $75 billion in online spending reflected in 2023 data.

While the Financial Technology Association reports less than a 2% delinquency rate for BNPL lenders, 71% of BNPL users also carry credit card debt, indicating potential financial strain.

Despite high usage, BNPL customers typically pay on time, with Afterpay and Klarna both reporting 96% of users meeting their payment obligations.

Read at Fast Company