Nearly half of the users of Buy Now, Pay Later (BNPL) services are from households earning less than $50,000 annually, as found in a recent Bank of America report. The report, which analyzed internal data, also noted that the use of BNPL is most popular among Millennials, followed by Gen X, Gen Z, and Baby Boomers. The growth of BNPL services is slowing, with only a slight increase in BNPL transactions noted in early 2024. Despite this slowdown, the report highlights an increase in retail spending via debit and credit cards among heavy BNPL users since 2019. This contrasts with a decline in spending among medium and light BNPL users. The report also discusses the financial challenges faced by BNPL users, with many reporting disruptions such as loss of government benefits or natural disasters. As the BNPL market adjusts, some providers may face acquisitions or closures, yet retailers like Walmart continue to partner with BNPL providers, indicating ongoing interest in the service.
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