Buy now, pay later is now one of the fastest-growing categories in consumer finance, according to a separate report by Wells Fargo.
"It's hard to know how much of this debt is out there," said Ted Rossman, senior industry analyst at Bankrate.
However, managing multiple buy now, pay later loans with different payment dates can also be a challenge, Quinlan added.
"BNPL could lead to an increase in consumer debt, as consumers may be more likely to take on additional debt if they know they can spread out the payments," he said.
watch nowWhile the typical terms might break a purchase into four equal interest-free payments, not all buy now, pay later loans work that way.
Persons:
Wells, Tim Quinlan, Quinlan, Ted Rossman, Max Levchin, Rossman
Organizations:
Wells, Finance
Locations:
Wells Fargo