Buy-Now-Pay-Later (BNPL) services have transformed the payment landscape, allowing consumers to purchase items now and pay for them over time, either through installments or deferred payments. This trend has gained immense popularity, especially among younger shoppers, and is expected to grow significantly in the coming years. Two major players in this space are Klarna and PayPal, both offering flexible BNPL options at online checkouts. PayPal allows users to pay in three interest-free installments or defer payments for up to four months, but missed payments can incur high interest rates and late fees. On the other hand, Klarna offers a user-friendly app with various payment options, including a 30-day deferment and long-term financing. While both services have their advantages, such as wide acceptance and streamlined experiences, they also have drawbacks, including potential late fees and limited retailer participation. This article helps consumers decide which BNPL option best suits their needs.
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