The Rise of Buy Now, Pay Later: Challenges and Trends

Younger consumers are increasingly turning to "buy now, pay later" options as credit card debt and delinquencies rise, with experts warning of a potential credit card crisis. A Bank of America survey revealed that nearly three in four Gen-Zers have reduced their spending due to higher inflation. VantageScore CEO Silvio Tavares noted that banks and credit card lenders are already pulling back, reducing the number of new credit accounts, while buy now, pay later providers continue to see growth. Tavares cautioned that if credit deterioration occurs in the next few months, it could be concerning for consumers who may face difficulty making payments.