Consumer Behavior
Consumers behind on buy now, pay later services
September 9, 2021
While more consumers than ever are using buy now, pay later services, an increasing number are falling behind on payments and 72% are experiencing declining credit scores as a result.
That's a prime finding from a Credit Karma study, conducted by Qualtrics, that polled just over 1,000 U.S. consumers about BNPL use and payments.
Young consumers are most likely to miss payments, according to a Reuters report on the study's findings which revealed more than half of Gen Z and/or millennials have missed at least one payment.
The study revealed a big jump in BNPL services driven by e-commerce activity during the past year and a half of COVID-19.
"It's easier than ever to purchase an item — and finance it — without even thinking about the implications of the purchase," Colleen McCreary, financial advocate at Credit Karma, told the news outlet. "It's this disconnect between making a purchase and actually paying for it where consumers can get in trouble."
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