The “Buy Now, Pay Later” craze is sweeping across the fintech landscape as payment platforms are expanding left and right to satisfy consumers looking for alternatives to traditional cash, credit, and debit purchases. As a result, it’s important for consumers to understand which platforms and payment models fit their needs.
Buy Now, Pay Later Users Have Fallen Behind Payments
“Pay in 4” is a service that offers consumers the option to pay for items purchased online through 4-biweekly installment payments for low-ticket retail items. Despite the recent surge in popularity across the US, a new study by Credit Karma has found that one third of U.S. consumers who have used “buy now, pay later” services have fallen behind on one or more payments, and 72 percent of those said their credit score has declined as a result. These troubling findings clearly reflect the disadvantages to the “Pay in 4” model that have been widely overlooked.
- The vast differences between “Pay in 4” and other types of BNPL Version 1.0 offerings in the marketplace and why consumers need to know the difference
- How “Pay in 4” can provide a gateway to overspending, an issue many Americans already face as debt continues to grow in the United States
- The future of BNPL; what will become of “Pay in 4” and will BNPL replace credit cards altogether? (he says yes!)
- Opy USA’s mission to alleviate consumer stress and inspire financial wellness through its unique version 2.0 BNPL model
Given the recent boom in the BNPL industry, along with Credit Karma’s recent survey findings, a story surrounding the disadvantages of the “pay in 4” trend and the antiquated features of version 1.0 BNPL offerings would make for a compelling story for your audience.