Your life on an installment plan: 'Buy now, pay later' features creep into more credit tools

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J.J. McCorvey is a business and economy reporter for NBC News.

Why pay all at once? It’s a question consumers are getting asked more often at checkouts, as installment plans resembling those offered by “buy now, pay later” services pop up in more places. Popular BNPL offerings like Afterpay, Affirm, Sezzle, Klarna and others — which let borrowers break up a purchase into several equal installments with little or no interest — exploded during the pandemic, fueled by lockdown-era e-commerce, stimulus checks and savings.

nice to be able to According to a NerdWallet analysis last month, the use of BNPL loans is most common among young people and parents of small kids — groups where strained finances are comparatively widespread. More than 1 in 3 parents of minor children have used a BNPL loan over the past year, the researchers found, versus just 1 in 5 for those without young kids. The Bank of America report found nearly half of BNPL borrowers made less than $50,000 annually.

 

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