" What’s new with buy now, pay later? A lot "

My favorite saying about credit cards pertains to buy now, pay later as well. And it goes like this: These payment methods are like power tools. They’re really useful or really dangerous depending on how you use them.

We see evidence of that in Bankrate’s 2025 Buy Now, Pay Later Survey, with about half (49 percent) of buy now, pay later (BNPL) users reporting at least one problem using these services. Some 24 percent say they have overspent using BNPL, 16 percent missed a payment, 15 percent regretted a purchase and 14 percent had trouble with a return or refund.

There’s a lot that we don’t know about BNPL, since the industry has only recently begun more widespread reporting to credit bureaus. While these lenders generally have fairly low delinquency rates, there’s anecdotal evidence that some users are getting carried away with their purchases. I have also heard that credit counseling agencies are fielding more inquiries from consumers who are in over their heads with BNPL.

Of course, much of the same pertains to credit cards, as evidenced by the power tools analogy. It’s common to hear about credit card users who slid down the slippery slope of debt, perhaps starting with some retail therapy or an emergency expense or simply the fact that day-to-day costs are high, and many paychecks aren’t keeping pace.

The economy contracted slightly in the first quarter, tariffs are roiling markets and layoffs are spiking. This is a risky environment for unsecured lending, as evidenced by the fact that Klarna (a leading BNPL lender) recently delayed its long-awaited initial public offering. The BNPL industry is venturing into uncharted waters.

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Read more at: https://www.bankrate.com/credit-cards/news/whats-new-with-buy-now-pay-later/

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