Buy Now, Pay Later: Who Uses It and Why

Abstract: Buy now, pay later (BNPL), a short-term, interest-free credit option for retail purchases, is becoming increasingly popular. At roughly 9 percent (as of fall 2023), the share of all consumers using BNPL is still relatively low, but it has grown by about 40 percent from two years earlier. This brief shows that BNPL use is significantly higher among financially vulnerable consumers and disproportionately high among women, Black, and Latino consumers.

Keywords: consumer credit; payments; BNPL;

JEL Classification: G21; G51; D14; E42;

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Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Current Policy Perspectives

Publication Date: 2024-05-22

Number: 2024-3