A new report by the Bank for International Settlements (BIS) shows that buy now, pay later (BNPL) adoption among young adults, particularly those with low education, is soaring. This trend is becoming increasingly prevalent in countries experiencing high inflation and where households tend to have higher debt levels.
BNPL allows consumers to spend money they don’t have over a number of interest-free installments, which are generally unreported to credit bureaus. The overuse and poor understanding of BNPL terms can be disastrous for consumers and lead to overindebtedness.
A surge in BNPL use was seen during Black Friday and Cyber Monday . According to Adobe Analytics, BNPL use on Cyber Monday hit a record high, up 43% from a year ago.
While the White House celebrated record holiday sales, a closer look at the data revealed a concerning trend: an increasing number of consumers are resorting to BNPL services for big-ticket items and […]
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