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The Risk of Buy Now Pay Later

Audio version available here:

Length: 1 min. 45 sec.

In recent years, Buy Now Pay Later installments have been more commonly used to afford costly products and services. Concerningly, despite the face-value promotion of affordability, there has been a rise in financial difficulties for its target market of mostly low-income users.

In the Consumer Expectations Credit Access Survey conducted in June of 2023, research found that a wide range of customers are offered and use Buy Now Pay Later (BNPL). However, the survey further shows that 32.7% of BNPL users fell into one of these three categories: a credit score under 620, a rejected credit application, or is a loan delinquent. Those with financial problems seem to be disproportionately targeted, raising concerns about the “resilience” of BNPL. BNPL services have a wide availability but experts suggest that more analysis needs to be conducted to understand how it may “affect overall financial well-being”.

The Buy Now Pay Later offer sounds like a great method for consumers with lower spending power. However, for those individuals, using BNPL may aggravate and bring about deeper financial stress. Rather than risking predatory payment plans, consult with a financial expert when looking to make a high-cost purchase.

For business owners, if you are thinking of offering BNPL for your customers, it is important to weigh the cost benefit analysis and assess the risk of collection that may ultimately affect the cash flow position of your business. We recommend you hire a financial professional such as a CPA, CFO or Financial Controller to build a financial model and cash flow projections that are sustainable in the long term. If you need to speak with a financial expert today, reach out to us at XQCPA. We are happy to assist you.

Phone: 832-295-3353

Did you know? XQ CPA and OneSelfClbu are giving away $10,000 to a select business through our video contest! Find out how to enter at

Low angle of young woman sitting in front of couch with laptop on lap, holding a credit card as she types.


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