By the numbers: Buy now, pay later (BNPL) is widely available to all consumers, yet uptake is disproportionately among those who are financially insecure, survey data from the Federal Reserve Bank of New York revealed.
Marketing tactics’ role in BNPL use: BNPL promotion is widespread—64% of all consumers have been offered a BNPL plan.
The takeaway: BNPL’s skew toward consumers who are already facing financial difficulties could be cause for concern.
More insight into the financial health of BNPL users is raising some red flags. And it could lead to long-awaited regulation to ensure the safety of these consumers.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a three-times-weekly recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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