By Reagan Steele – Business & Economic Policy Writer

The “buy now, pay later” boom is being sold as a smarter, friendlier way to shop. Whether it’s Klarna, Affirm, Afterpay, or the countless others, the promise sounds simple: break up a purchase into a few “interest-free” payments and skip the credit card debt.

But the fine print tells a different story. According to data cited in a recent Wall Street Journal report, 40% of BNPL users paid late at least once in the past year. That’s not a coincidence—that’s the business model. By making people believe the payments will be easy, the companies push customers into spending more than they should, then profit when those payments slip.

On the surface, BNPL avoids the word “interest.” But when the due dates hit and folks miss them, fees pile up quick. And for borrowers who roll into longer-term plans, those “free” loans start looking a whole lot like high-interest debt—just without the same disclosures credit cards are required to show.

Merchants buy in because shoppers spend more when BNPL is an option. That’s why you see it offered on everything from airline tickets to burrito bowls on delivery apps. The fees merchants pay—often higher than credit card processing—are passed along to consumers in the end, whether they realize it or not.

For families already stretched thin by rising costs, BNPL can feel like a lifeline. In reality, it’s a debt trap wrapped in slick marketing. Critics warn it’s the same predatory cycle as payday loans or subprime credit—just with better branding and a shinier app.