Buy Now, Pay Later Space Experiences Hiccups
The state of the promising buy now, pay later payment concept, initially embraced by consumers and merchants alike, is experiencing a rising number of delinquencies in a slowing economy.
DCA Insight:
Buy now, pay later—allowing shoppers to split the cost of their purchases into multiple payments over time—gained popularity last year. Consumers with limited savings and lower levels of credit used the payment programs to pay for clothing, cosmetics, home appliances and other goods. While overall levels of bad debt are low, discontinuation of pandemic stimulus programs and increasing inflation are slowing the programs’ growth.