Buy Now Pay Later
About Buy Now Pay Later
Buy Now Pay Later services allow consumers to purchase items and pay in installments, usually without interest. Klarna, founded in Sweden in 2005, pioneered the model. Afterpay, founded in Australia in 2014, popularized pay in four. Affirm, founded by PayPal co founder Max Levchin in 2012, focused on larger purchases. BNPL grew explosively during COVID 19. Square acquired Afterpay for 29 billion in 2022. Apple Pay Later launched in 2023 but was discontinued in 2024. BNPL has been criticized for encouraging overspending, particularly among young consumers. Regulators in the UK, Australia, and EU have moved to regulate BNPL like credit. The BNPL industry faces challenges as interest rates rose and loss rates increased.
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