buy now pay later

Retail spending rose by 1.7% from February to March. Experts said people are spending their tax refunds and increasingly turning to credit — even for groceries.

New homeowners are using the “buy now, pay later” credit tool during and after the process of buying a home, according to research from the JPMorganChase Institute.

Cora Lewis, a business reporter at the Associated Press, discusses the rising trend of using “buy now, pay later” services to pay rent.

“Buy now, pay later” transactions, which are essentially zero-interest, short-term loans, topped $1 billion for the first time this past Cyber Monday.

Women are more likely than men to use buy now, pay later services, even though men carry more total debt.

The payment company Klarna is partnering with the delivery service DoorDash to offer what is essentially short term credit.

December sales figures showed spending was strong, but more consumers are using credit cards and buy now, pay later programs to finance purchases.

Consumer credit overall increased, while revolving debt — that’s mostly on credit cards — was down 1.2%, according to the Federal Reserve.

Adobe’s latest forecast shows consumers are expected to spend a record $18.5 billion through buy now, pay later financing this year. That’s up more than 11% year over year.

The Consumer Financial Protection Bureau announced new rules today requiring companies like Afterpay and Klarna to investigate when customers dispute a charge, and issue refunds for returned products. They’ll also have to provide periodic billing statements.