## Buy Now, Pay Later: A Threat to Credit Cards?
Buy now, pay later (BNPL) services are booming, offering consumers an appealing alternative to credit cards. But what’s driving this trend, and what does it mean for traditional financial institutions? Here’s a quick rundown:
- Popularity Surge: BNPL plans, like Affirm and Klarna, allow consumers to split purchases into short-term, interest-free installments. This is attracting a large user base, with an estimated 86.5 million Americans using BNPL in 2024, and projections for further growth in 2025.
- Consumer Appeal: BNPL is attracting consumers who either don’t want to use credit cards or have limited credit available.
- Impact on Credit Cards: BNPL is directly impacting credit card usage and revenue. Every purchase financed through BNPL is a purchase that might have been made with a credit card.
- Concerns for Traditional Lenders: Banks and credit card companies are wary of BNPL users, as these services create a “black hole” in understanding a consumer’s credit profile.
Want to learn more about the rise of BNPL and its impact? Check out the original article [here](insert_original_article_link_here).