NEW YORK—A third of U.S. consumers who used buy now, pay later services have fallen behind on one or more payments, and 72% of those said their credit score declined, a new Credit Karma study has revealed.
The study found 44% had used BNPL solutions, which allow for interest-free installment payments during a certain period, on prior purchases.
The latest survey found younger consumers were the most likely to miss payments.
More than half of Gen Z or Millennial respondents—those born between the early 1980s and mid-to-late 1990s—said they had missed at least one payment. That compares with 22% of Gen X, who were born in the early 1960s to early 1980s, and 10% of Baby Boomers, those born between the mid-1940s and 1960, Reuters reported in its analysis.
The BNPL findings come shortly after the release of one analysis by TransUnion that found, contrary to the fears of card issuers, consumers who use BNPL solutions at the point of sale are also actively utilizing traditional credit.
That finding was highlighted in a TransUnion study, “Understanding the Evolving Point-of-Sale Industry.”