[3] The earliest form of BNPL traces back to the 19th century, when installment plans emerged as a way for consumers to purchase expensive goods (e.g. furniture, pianos and farm equipment) they did not have the funds to buy outright.
[8] BNPL has been described as "similar to a credit card but without the hassles of an application process, card-swiping infrastructure, and separate limits for purchases and cash withdrawals".
[10] When consumers fall behind on payments, late fees are typically charged by their financiers, and persistently delinquent accounts may be sold to debt collection agencies.
[11] In March 2024, NBC News reported that consumers ages 35 and under comprise 53% of “buy now, pay later” users but just 35% of traditional credit card holders.
[13] Although BNPL payments are usually interest-free, financiers have been noted to report defaults more frequently than successful repayments to credit-rating agencies, potentially putting the credit rating of consumers in jeopardy.