Buy now, pay later: A convenient lifeline or a looming debt trap?
Buy Now, Pay Later (BNPL) services like Klarna, Affirm, and Afterpay are becoming mainstream around the globe. With consumer uncertainty high, even basic purchases — groceries, lunch orders, concert tickets — can now be split into interest‑free installments.
That convenience is a double-edged sword:
- For many, it offers short-term relief and greater #payment flexibility at checkout.
- But critics warn BNPL is expanding debt into everyday spending — especially for financially vulnerable users.
Globally, BNPL transactions have exploded — from ~$50 billion in 2019 to ~$370 billion by 2023. Still, experts say growth may be outpacing protections — and sustainability.
Bottom line: BNPL is filling a financial gap, but without education and regulatory guardrails, it risks morphing from a convenience to a crisis.
