Buy Now, Pay Later (BNPL) has emerged as a popular payment option since its rise during the COVID-19 pandemic, allowing consumers to make purchases without paying the full amount upfront. Programs like Klarna, Afterpay, and Affirm enable shoppers to split their payments into interest-free installments, making it easier to manage expenses. Despite concerns about consumer debt and potential fees for missed payments, BNPL usage has seen a resurgence, with approximately 88.2 million Americans utilizing these services in 2023. While new user growth has slowed, returning customers have increased significantly, indicating a shift in the consumer base. Industry experts predict a 16% increase in BNPL transactions by the end of 2024, with certain companies like Sezzle reporting impressive growth. However, the sector faces challenges, including potential regulatory changes and market fluctuations. While BNPL may not replace credit cards, it is expected to remain a relevant payment option for the foreseeable future.
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