The NY Fed previously deemed consumers using BNPL as more likely to be “financially fragile,” noting in a September report that they have credit scores below 620, have been delinquent on a loan or have been rejected for a credit application over the past year.
The study released Tuesday, “How and Why Do Consumers Use ‘Buy Now, Pay Later’?” offers more evidence that BNPL is especially appealing to those who struggle to obtain credit, researchers wrote in the blog post. BNPL loan terms can vary, but the concept generally refers to interest-free loans paid in four or fewer installments.
