NEW YORK—Is the rapid growth of buy now, pay later services ending?
A new report from The Wall Street Journal suggests that tougher economic times are leading BNPL providers to more closely scrutinize who gets to use their services.
“Some users of buy now, pay later apps might face something new when they try to use the payment method: rejection,” noted The Journal.
Higher interest rates and recession concerns are challenging the business model behind services such as Affirm, Klarna and Sezzle, which say they are tightening credit standards to focus on making a profit, rather than growth.
“Some customers say they have been caught off guard by unexpected denials or lower spending limits when they try to make purchases,” The Journal said.