The “buy now, pay later” solution is spreading – but late repayments are increasing

By: Trademagazin Date: 2025. 04. 25. 10:56

Buy-now-pay-later (BNPL) financing is becoming increasingly popular in the United States, but the rate of late payments is also increasing, according to a recent survey by Lending Tree. According to the research, almost half of respondents aged 18-79 have already used BNPL services, and a quarter of them also financed their everyday purchases this way. This is a significant increase compared to the 14 percent rate a year earlier and the 21 percent rate in 2023, VG.hu points out.

According to the survey, 41 percent of BNPL users reported late payments, which is also an increase compared to the 34 percent rate the previous year. Matt Schulz, Lending Tree’s senior retail lending analyst, highlighted that while most of the delays are only a few days, many consumers are struggling with budget difficulties due to inflation and high interest rates.

According to Schulz, the situation is expected to worsen: more and more people are taking advantage of the relief provided by BNPL loans, but taking out multiple loans simultaneously poses serious financial risks. According to the survey, 60 percent of BNPL users have taken out multiple loans, and nearly a quarter of them have accumulated three or more debts.

Although BNPL schemes can be free of charge, delays come with serious costs, so experts recommend increased caution. The spread of the service is well indicated by the fact that 60 percent of tickets for the Coachella festival were paid for in this way, and food delivery companies are already offering BNPL options – for example, DoorDash in collaboration with Klarna.

While American consumer spending has proven surprisingly resilient to high inflation in recent years, several large companies, such as Walmart and Delta Airlines, have recently warned of weakening consumer demand.