In a recent PYMNTS Intelligence survey, it was revealed that more than half (56%) of US consumers utilized a pay later plan in the year leading up to October 2024. This trend reflects a significant shift in consumer behavior, as many are now using buy now, pay later (BNPL) options not just for larger purchases but also for everyday essentials. Specifically, 42.1% of users turned to BNPL for clothing and accessories, while 35.1% used it for groceries. Other common purchases included appliances (29.6%), consumer electronics (29.0%), and home furnishings (28.5%). This reliance on BNPL for everyday expenses raises concerns about consumer financial health, indicating that many may lack sufficient cash flow. With outstanding credit card debt also on the rise, frequent use of BNPL could lead to overextension, complicating consumers' ability to meet their other financial obligations. While BNPL providers like Klarna report low loss rates, the long-term implications of this trend warrant careful consideration.
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