The financial trends in the United States (like all other countries), are in a delicate and changing situation due to the consequences of tariffs imposed by Trump, which have led to inflation and price increases affecting almost all supplies. This is why payment methods have been introduced through credit called ‘Buy Now, Pay Later’ (BNPL). Like any other credit, they work with bank cards that have a credit that the user can use for any type of purchase. It is an effective method that helps the country’s economy by encouraging consumption and helping those in vulnerable situations.
Buy Now, Pay Later’ (BNPL)
It is no news to anyone the impact that has had on society the implementation of the tariff measure imposed by Republican President Trump. Absolutely all products have been affected, leading to a significant price increase even in basic supplies. According to a report by LendinTree published in Infobae, more and more people are using credit to meet their daily payments or purchases. In this case, they have opted for loans called Buy Now, Pay Later (BNPL). This type of credit differs from the usual ones because it offers a period of months without payment of interest. However, if the customer is late in paying the fees, they would face much higher charges.
Pros and cons of Buy Now, Pay Later (BNPL)
More and more people are using bank loans to meet day-to-day payments. In the case of BNPL, this increase has also been noted, with young people aged 18-28 as their preferred payment method. However, this survey also reveals that only 29% of respondents aged 61-79 have used it. This shows that it is not an easy method to acquire for those in a vulnerable situation. Of the half of the survey sample, 25% said they used the card to make purchases, while 50% use it for all types of purchases. Although the growth in the use of this type of credit has increased over the years, it is now that exact figures are available.
An estimation of a 21% increase in 2023 and a greater one this 2025 has been made. One of the most striking data from the survey shows that 60% of respondents who make use of this credit, maintain in turn 3 more credits, thus increasing their debt by a total of 4 credits at the same time. Despite the attractiveness of being able to pay for any item or type of purchase with a card without worrying too much and knowing that you will not have interest when returning that amount, it is a risky option.
It may be an essential and vital aid to many families who use them for shopping and eating, but there are many others who are unable to control this expenditure and that is when the problem arises. 41% of respondents, almost half, say they have problems making payments on their contributions, which is an even higher amount, added to the high mark-ups.
How and for what is it used?
Companies are clear about their preferred platform to offer this service as consumers. Among several alternatives such as Klarna, Afterpay or Affirm a 56% chooses PayPal as winner. According to LendingTree’s chief consumer finance analyst, Matt Schulz, “This trend clearly shows that there are many people who are struggling with high costs in the supermarket and elsewhere, and who are looking for any way to help them make ends meet a little more easily.”
However, there are many users who request this type of credit to spend on purchases that have nothing to do with food and make ends meet. Devices such as mobile phones, computers, televisions or clothing are often the main motivations. What about you? Have you got a BNPL credit? Do you find it hard to control your expenses?
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