How Americans Take Advantage of 'Buy Now, Pay Later'

Over the past few years, Buy Now, Pay Later (BNPL) services have quickly gained popularity as an alternative to credit cards or other “traditional” payment methods. Offering a convenient and flexible payment option, BNPL services such as PayPal, Affirm, Afterpay or Klarna allow consumers to make purchases with delayed payment or to even spread the costs over installments without interest or with minimal fees. This approach is especially appealing to younger (and often cash-strapped) consumers seeking immediate gratification without the nuisance of having to pay right away.

According to Statista Consumer Insights, 41 percent of U.S. adults have used Buy Now, Pay Later services in the past 12 months with another 22 percent saying they haven’t but could imagine doing so in the future. When looking at how Americans take advantage of BNPL services, it’s clear that they try to avoid additional costs. While 18 percent of respondents have paid in installments without extra fees or interest and 16 percent have paid the whole amount at a later time, paying in installments with additional charges is less popular at 10 percent.