On Tuesday, September 26, 2023, the Federal Reserve Bank of New York will release a Liberty Street Economics blog post, titled “Who Uses Buy Now, Pay Later?”, as part of the recurring Economic Inequality research series that highlights differences in economic outcomes and policy impacts by race, gender, age, geography, income, education, and other factors. The blog examines the characteristics of consumers who receive and take up “Buy now, pay later” (BNPL) offers across demographic and socioeconomic groups.
BNPL options provide consumers with the flexibility to pay for goods and services over time. However, the Consumer Financial Protection Bureau has identified several risks associated with its growing use including inconsistent consumer protections, debt accumulation, and overextension. While more research is needed to assess the overall risks and benefits of BNPL loans, the blog leverages data collected in the June 2023 Survey of Consumer Expectations Credit Access Survey to analyze both the availability and use of BNPL loans.
Press Call on the Blog:
A deep background press call will take place on Tuesday, September 26 at 9:00 AM EDT to provide further context on the blog. Journalists interested in participating should RSVP to Mariah Measey at Mariah.Measey@ny.frb.org.
