NEW YORK—Concerns are once more being raised over indications the popular buy now, pay later solutions are getting some borrowers in financial trouble, leading to mounting delinquencies among the providers of the no- or low-fee loans.
Shoppers, who continue spending at a steady clip, are using the BNPL option to delay payment not only on discretionary goods but also to buy necessities like groceries, according to data from Adobe Analytics that indicate the share of such BNPL orders grew 40% in the first two months of 2022 compared with a year earlier, the Journal noted.
“What’s more, BNPL users, which accounted for some 17% of consumer borrowers between the first quarter of 2021 and the first quarter of 2022, were 11 percentage points more likely than non-BNPL borrowers to have a delinquency of at least 30 days on their credit records, according to a March report from the Consumer Financial Protection Bureau,” the Wall Street Journal reported.
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