The Economist.
How could I arrange to pay for this?
Maybe on the installment planner?
It started over a century ago with installment loans for sewing machines and sofas.
6% a year, so much down, so much a month.
But in 2025, buy now pay later financing can be used for anything.
Even your lunchtime burrito.
Ever wish you could order fast food and then pay for it later?
Well, Doordash is teaming up with a company Clana to make your delivery dreams come true.
A decade ago, about $2 billion worth of goods were bought using Buy Now Pay Later, or BNPL.
But by last year, that figure had ballooned to $342 billion,
with Swedish lender Klarna and US competitor Affirm leading the charge.
Customers with access to loans spent at least 20% more than those without access.
But some campaigners are worried about the growth of BNPL.
They say it's putting those who can least afford it into more debt.
But the real problem from Buy Now Pay Later comes with people
who take out multiple Buy Now Pay Later and there are no affordability checks.
21% of missed or made a late payment, 10% of people were visited by a bailiff due to Buy Now Pay Later.
It can mess up your credit score, stop you getting a mortgage.
Despite those concerns, BNPL could be a valuable innovation, extending credit lines to greener borrowers,