Will Buy Now, Pay Later Dominate Future Retail Sales?

As inflation causes retail prices to rise on most products, consumers are looking for an easy, flexible way to afford big ticket items they need or want to purchase.

With prices on products rising, people may find their credit card balances and interest payments growing along with inflation. Financial institutions and merchants in recent years have been expanding the use of buy now, pay later programs for consumers that have been gaining in popularity.

Under the typical BNPL plan, a customer purchases a product online, and in some cases instore, with a minimum and maximum sale amount. The customer then makes periodic payments that could be weekly, every two weeks, maybe monthly and in at least one case, up to a year. The payment plan is usually interest free with the only fees being late fees.