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Buy Now, Pay Later: Who Uses It and Why

Author

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  • Joanna Stavins

Abstract

Buy now, pay later (BNPL), a short-term, interest-free credit option for retail purchases, is becoming increasingly popular. At roughly 9 percent (as of fall 2023), the share of all consumers using BNPL is still relatively low, but it has grown by about 40 percent from two years earlier. This brief shows that BNPL use is significantly higher among financially vulnerable consumers and disproportionately high among women, Black, and Latino consumers.

Suggested Citation

  • Joanna Stavins, 2024. "Buy Now, Pay Later: Who Uses It and Why," Current Policy Perspectives 2024-3, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbcq:98288
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    More about this item

    Keywords

    consumer credit; payments; BNPL;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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