Buy now, stress later? The risk of paying late

CNBC reports that 'Buy Now, Pay Later' (BNPL) loans are increasing as consumers use credit to manage rising everyday costs, not discretionary luxuries. New data show a growing number of BNPL borrowers are falling behind, pointing to deteriorating repayment behavior. Overall, this is a modest credit-quality headwind for BNPL lenders.

Analysis

CNBC reports that 'Buy Now, Pay Later' (BNPL) loans are increasing as consumers use credit to manage rising everyday costs, not discretionary luxuries. New data show a growing number of BNPL borrowers are falling behind, pointing to deteriorating repayment behavior. Overall, this is a modest credit-quality headwind for BNPL lenders.