Philly Fed study shows growth in ‘buy now, pay later’ products

Users of deferred-payment schemes are generally people in financial difficulty, say authors


More people are using buy now, pay later (BNPL) financial services, according to new research from the Federal Reserve Bank of Philadelphia.

In their report, authors Tom Akana and Valeria Zeballos Doubinko say that since 2019 there has been a rapid growth in the volume of transactions in which consumers pay for products in instalments. 

One common method is “4-in-6”, whereby a consumer makes four payments during the six weeks following a purchase. 

BNPL products, say the authors, “might pose risks

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