Overview

• Adoption is broadening to everyday needs, with Canadian fintech Koho reporting BNPL use among eligible users rising from 38% to 44% in six months, led by groceries, telecom and restaurants, with an average transaction of $187 and average loan of $345.
• Financial counselors say the low upfront cost encourages overspending and stacking loans across multiple providers that often do not share data, making it easy to lose track of obligations.
• Late payments are becoming more common, with recent reporting indicating over 40% of BNPL users were late at least once in the past year, and missed payments can quickly trigger interest or fees.
• Credit consequences are expanding as BNPL performance increasingly enters traditional reporting and scoring, with experts noting FICO changes that can capture BNPL debts and delinquencies.
• BNPL debts are unsecured and can be sent to collectors; settlement may be possible in some cases, though outcomes vary by provider and many debt-relief firms require $7,500 to $10,000 in total unsecured debt, prompting advisers to suggest contacting lenders about hardship options, considering consolidation and seeking credit counseling.