Chase is making significant changes to its credit card policies regarding Buy Now, Pay Later (BNPL) services. Starting October 10, 2024, Chase credit cardholders will no longer be able to use their cards to pay for third-party BNPL loans, such as those from Klarna and Afterpay. This decision appears to be a strategic move by Chase to steer customers toward its own BNPL service, Pay Over Time, which allows cardholders to convert eligible purchases into installment plans. The change reflects a broader trend among banks to promote their own financial products over external options, as Chase aims to capture a share of the growing BNPL market, projected to reach $81 billion in the U.S. this year. While debit cards will still be accepted for BNPL payments, the shift raises concerns about consumer debt and the risks associated with using credit cards for BNPL transactions. Ultimately, consumers should remain vigilant about their spending habits and the total cost of ownership when utilizing various payment methods.
Read the full article here.