Banks are increasingly offering buy now, pay later (BNPL) options for debit card purchases, allowing consumers to split payments into installments. This shift aims to compete with established BNPL companies like Affirm and Klarna, especially as consumers prioritize budgeting amid fluctuating interest rates. Research indicates that a significant number of consumers—60%—have utilized installment plans, suggesting a readiness for banks to adopt this model. For instance, J.P. Morgan Chase's Pay in 4 program allows eligible debit purchases between $50 and $400 to be divided into four payments over eight weeks. Similarly, Suffolk Credit Union has introduced its own BNPL product targeting debit transactions. Companies like Galileo Financial Technologies and Equipifi are enhancing the infrastructure for debit BNPL options, making it easier for banks and FinTechs to offer these services. As traditional financial institutions embrace this trend, the lines between debit and credit payment options continue to blur, providing consumers with more flexible payment solutions.
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