During the pandemic there was an increase in the amount of people who were using buy now pay later payment methods. In times of financial insecurity for many people, these methods made paying large expenses such as medical, dental, or vet bills much more manageable. Instead of paying for the entire trip right away or having to put the costs onto credit cards, people are able to break up payments into more manageable chunks over a longer period of time. Even after the pandemic, there are still many people who prefer this way of payment over traditional methods!
Millennials’ interest in buying now pay later has increased more than any other age group after the pandemic. This could be because most millennials are at a time where they are working while trying to support a family, and sometimes money can be a little too tight to think about big expenses–even if they are important like dentist or doctor trips. 40% of people who visit the dentist take at least one month to pay off a trip to the dentist when they put it onto credit cards, so switching to buy now pays later can alleviate some of the stress in paying off this credit card debt.
Buying now and paying later isn’t the same as credit card debt. The money isn’t being borrowed, so there is less stress about paying it back. This can be a relief to the 30% of Americans who plan to pay their next dentist visits with credit cards, as it can be stressful trying to pay back debt when money is already tight.
Even the best budgeters are benefitting from buy now pay later. With payment flexibility, less credit card debt, and fixed rates being some of the many benefits, it’s no wonder so many people are switching to this new way to pay.