Between an upfront payment of $120 or four separate smaller payments of $30, which one would you prefer? For almost half of all Americans, it’s easily the latter.
Buy now, pay later services like Klarna and Afterpay have become increasingly popular in recent years, acting as microloans for many online purchases. The reasons for their popularity are apparent: You get the instant gratification of buying and receiving a product at a slashed upfront cost, without having to pay interest fees upon repayment. And unlike traditional loans, you generally don’t need to pass a hard credit check to qualify for BNPL, per the Consumer Financial Protection Bureau.
