Use of ‘Buy Now, Pay Later’ Financing Increasing

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Sales during Cyber Monday 2022 were $11.3 billion. That’s a 5.7 percent increase from 2021. It also outperformed Black Friday 2022. And even though many of those cyber sales were funded by credit cards, and “buy now, pay later” (BNPL) financing played a big role—it was up 88 percent week over week.

This particular financing is often offered at online check-out and is popular among the young. But what is BNPL, and will it help or hurt someone’s credit?

BNPL Provides Short-Term Credit

Buy now pay later (BNPL) is a growing trend regarding large purchases. And although it’s still not as big as credit cards since the pandemic shutdown, its use has steadily increased.