BNPL Growth: Economic Pressure & Rise of Buy Now, Pay Later
- Economic headwinds, including potential tariffs and rising inflation, are pushing consumers toward buy now, pay later (BNPL) services.
- Nadine Chabrier, senior policy council at the Center for Responsible Lending, noted the appeal of buy now, pay later options. She said consumers frequently enough use these services...
- The rise of tariffs and general economic unease are making consumers hesitant to spend their funds, increasing the attractiveness of BNPL.
Economic pressure is fueling the surge in buy now,pay later (BNPL) services,as consumers seek alternatives amid rising inflation and potential tariffs. Popular platforms such as Klarna and Affirm are increasingly integrated into everyday purchases,offering convenient payment options,but experts caution that this ease of access could lead to financial overextension.BNPL’s appeal stems from the ability to spread payments, especially for those who find it challenging to afford upfront costs.Its use extends from electronics to groceries. News Directory 3 explores the implications. However, concerns linger regarding potential debt issues, with some users relying on thes services for essential items. Discover what’s next as economic uncertainty persists and the BNPL landscape continues to evolve.
Buy Now, Pay Later Services rise Amid Economic Uncertainty
Updated June 04, 2025
Economic headwinds, including potential tariffs and rising inflation, are pushing consumers toward buy now, pay later (BNPL) services. These services, such as Klarna, Affirm, and Afterpay, allow shoppers to spread payments over weeks or months, often without interest.
Nadine Chabrier, senior policy council at the Center for Responsible Lending, noted the appeal of buy now, pay later options. She said consumers frequently enough use these services as they cannot afford the full cost upfront and appreciate the higher approval rates and convenience.
The rise of tariffs and general economic unease are making consumers hesitant to spend their funds, increasing the attractiveness of BNPL. These services are now integrated into major payment platforms, including PayPal, and are used for everything from electronics to groceries.
Matt Gross, a spokesperson for Affirm, said that while growth may not be as high as during the pandemic, it still outpaces broader spending levels.
However, watchdogs express concern that buy now, pay later services may lead to financial strain, especially among lower-income individuals. A recent study indicated that 25% of U.S. BNPL users rely on these services for essential items like food.
Before tariffs even came into the picture, people were already using BNPL for gas and groceries. We’re already talking about folks who may not have a lot of money or credit to spare. Additional economic stress could be hard.
What’s next
As economic conditions remain uncertain, the use of buy now, pay later services is expected to continue growing. Experts advise consumers to carefully consider their ability to repay before using these options to avoid potential debt issues.