Chase Bank is tightening its grip on Buy Now Pay Later (BNPL) services by prohibiting customers from using their Chase credit cards to pay for third-party BNPL platforms like Klarna and AfterPay, effective October 10. Instead, Chase is steering customers towards its own BNPL option, which requires users to log into their Chase account post-purchase to enroll in installment plans, typically for purchases exceeding $100. This move appears to be a strategy to protect Chase's market share in the growing BNPL sector. Industry expert Ted Rossman warns consumers about the evolving nature of these financing options, emphasizing the importance of understanding the total cost of ownership, as many BNPL plans now come with interest and longer repayment periods. Additionally, he advises consumers to be vigilant about the number of BNPL plans they sign up for, as multiple small installments can quickly accumulate into a significant debt burden.
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