CFPB Report Identifies BNPL Users: Younger Consumers with Heavier Debt

The Consumer Financial Protection Bureau (CFPB) released its updated report on Buy Now, Pay Later (BNPL) trends. BNPL usage is widespread among borrower with incomes of less than $50,000 and younger than 35. Not only do BNPL borrowers have access to credit, but, according to the report, are more likely to be highly indebted (auto loans, student loans) with higher credit card balances and delinquencies than non-BNPL users. The report also found greater use of high-interest financial services such as payday loans, pawn loans, and bank account overdrafts among BNPL borrowers. CFPB Director Rohit Chopra says they are reviewing consumer use of BNPL and “like other forms of credit, we are working to ensure that borrowers have similar protections and that companies play by similar rules.”

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