As cash flow shortages become increasingly common among U.S. consumers, many are turning to alternative payment methods such as buy now, pay later (BNPL) to help manage their financial strain. A recent report from PYMNTS Intelligence highlights that consumers facing cash flow challenges are significantly more likely to utilize BNPL services, with those frequently encountering financial difficulties being 3.5 times more inclined to use this payment option. The report reveals that 22% of consumers experience cash flow shortages occasionally, with millennials being particularly affected. BNPL offers flexibility by allowing consumers to break payments into smaller installments, making it a more accessible solution compared to traditional credit options, which often come with high interest rates and barriers to entry. With a substantial portion of the population living paycheck-to-paycheck, BNPL is emerging as a crucial tool for those who struggle to cover immediate expenses, providing a lifeline amidst economic uncertainty.
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