Buy now pay later delinquencies are rising as inflation boosts demand
More Americans are turning to buy now, pay later apps to afford everyday necessities, but an increasing share of consumers aren’t making payments on time, a trend likely to accelerate as the U.S. economy inches closer to a recession.
Traditional lenders, like banks and credit card companies, automatically dial back lending particularly to riskier borrowers when delinquencies inch up to limit future losses. But experts are divided on whether buy now, pay later firms will do the same based on whether they’re prioritizing user growth or profitability.
More Americans are turning to buy now, pay later apps to afford everyday necessities, but an increasing share of consumers aren’t making payments on time, a trend likely to accelerate as the U.S. economy inches closer to a recession. Traditional lenders , like banks and credit card companies , automatically dial back lending particularly to riskier borrowers when delinquencies inch up to limit future losses . But experts are divided on whether buy now, pay later firms will do the same based on whether they’re prioritizing user growth or profitability .
