Buy Now, Pay Later (BNPL) Services: What they are and should you use them

Buy now, pay later (BNPL) services are rising in popularity with consumers. Services such as Sezzle, Afterpay, and Klarna let shoppers break up their payments into interest-free installments and take their purchases home the same day.

With so many consumers opting in and many services to choose from, it seems like BNPL services might be a good way to pay.

Point-of-sale installment loans appear to be a no-brainer for shoppers on a budget. But it’s essential to understand how these products work.

While these programs offer attractive benefits, they aren’t the right fit for many shoppers.

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The Rise of BNPL Services

Short-term financing like BNPL services have been around for a while, but they soared in popularity during the pandemic. Top BNPL apps have seen a 186% increase in monthly active users since the start of the Covid-19 pandemic.

Users like the BNPL business model, similar to traditional store layaway models…