Buy now, pay later is popular online, but some shoppers run into problems Boston 25 News [Video]

BOSTON — Anthe Kelley owns a yoga studio in Roslindale and says “buy now, pay later” payment options came in handy when she needed to make several large purchases.

“It was very helpful for me when I needed to get some new equipment. I could purchase the equipment I needed and just pay in chunks,” Kelley said. “It kind of reminds me of old school layaway.”

Buy now, pay later services have exploded in popularity, especially among young shoppers who view it as a cheap form of financing. But extended payment plans can also trip up consumers. More than half of buy now, pay later shoppers have experienced at least one problem with the services, according to a new report from the consumer financial services company Bankrate.

“Buy now, pay later has gotten a lot more popular in recent years,” Bankrate Senior Industry Analyst Ted Rossman said. “These companies try to position themselves as an alternative to credit cards.”

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