Consumers are flocking to Buy Now, Pay Later (BNPL) options for their ease and zero interest. Adobe Analytics forecasts a surge to $84 billion in spending by 2024, up 13% from last year. Yet, this invisible debt remains hidden from credit bureaus, lenders, and policymakers. Sheridan Trent from TSG notes younger generations are driving this trend, familiarizing themselves with platforms like Klarna and Afterpay. While BNPL allows borrowing with poor credit, most loans and delinquencies aren't reported to credit agencies. Delicia Reynolds Hand from Consumer Reports warns this obscures true debt burdens, potentially misguiding economists and policymakers. Without regulatory transparency, the borrowing habits of Gen Z and Millennials remain a mystery.
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