Research: How “Buy Now, Pay Later” Is Changing Consumer Spending

Today, the widespread ability to use Buy Now, Pay Later (BNPL) schemes like Afterpay and Klarna in online retail is transforming how consumers pay for purchases. Rather than relying on debit or credit cards, consumers are increasingly using BNPL services to spread payments across interest-free installments. However, BNPL is costly to retailers, and policymakers have begun to regulate BNPL due to its broad usage and potential impacts on consumers.