Buy now pay (Pain?) later

• Main Authors: DEHAAN, KIM, Jungbae, LOURIE, Ben, ZHU, Chenqi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: BNPL; FinTech; Consumer credit; Household accounting; Household finance; Regulation; Accounting; E-Commerce; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/soa_research/2056
• Institution: Singapore Management University

“Buy-now-pay-later” (BNPL) is a relatively unregulated FinTech innovation that provides consumers with easy access to credit for retail purchases. BNPL spending is projected to reach $1 trillion by 2025, but we know little about its effects. Using banking data for10.6 million U.S. consumers, we inve...