CNN —Buy now, Pay Later services had their best day yet on Cyber Monday, with consumers spending a record-breaking $991.2 million, according to Adobe Analytics.
BNPL shoppers are more likely to be unable to pay some or any bills and to be concerned about making ends meet in the next year.
While consumers perceive BNPL services to be a safer alternative to credit cards, experts warn that they carry risks.
Young people are not only more likely to use BNPL services but are more likely to encounter issues when they do.
While most traditional BNPL services require interest-free payments, some include interest or late fees that consumers may not be aware of.
Persons:
Dionysius Ang, “, ” Ang, BNPL, Ted Rossman, Lisa L, Gill, Baby Boomer, Z, Rossman
Organizations:
CNN, Adobe Analytics, Consumers, University of Leeds, Federal Reserve Bank of Philadelphia, Boomers, Consumer, Consumer Financial
Locations:
United States, England