New Survey Finds More Than Half of BNPL Users Have Encountered Issues

According to a Bankrate survey released last week, 56 percent of Buy Now, Pay Later (BNPL) users say they’ve encountered at least one issue while using the services, such as spending more than they should have (29 percent), missing a payment (18 percent), or facing difficulties with returning a purchase or obtaining a refund (18 percent).

 “While buy now, pay later can be a useful way to spread out the financial impact of a big purchase, it also represents a slippery slope that can lead to overspending,” said Bankrate Senior Industry Analyst Ted Rossman. “The terms vary widely from provider to provider and merchant to merchant. Individual circumstances, such as your credit history, play an important role as well.”

The survey also found that consumers choose BNPL services because of the ability to spread out cash flow (50 percent), followed by the appeal of low or 0 percent interest rates (37 percent). Other common reasons include knowing exactly how much they owe and how long the plan will last (33 percent) and easy access to credit (27 percent). 26 percent of BNPL users said they think these services are more responsible than traditional credit cards.

Nearly two in five adults have used BNPL services, with the most popular platforms being PayPal Pay in 4 or PayPal Pay Later, Affirm, Afterpay, and Klarna.

Bankrate commissioned YouGov Plc to conduct the survey between March 4-6, 2024, which had a total sample size of 2,276 adults.