Buy now, pay later platforms (BNPL) often get a bad rap from personal finance experts. Critics point to a BNPL payment model that can add to consumer debt and may trigger repeat purchases among shoppers who can’t resist the low- or no-down payment model without considering the real cost.
Yet so-called BNPL programs can offer some benefits, especially if users pay their debts on time.
That’s exactly what’s happening with BNPL loans, as a new study by Afterpay, a buy now, pay later services provider, demonstrates. According to the report, 96 percent of Afterpay’s U.S. Pay-in-4 customers who shopped during the 2025 Black Friday and Cyber Monday period “paid off their purchases early or on time.”
“This data is a testament to the discipline and financial responsibility of our customers," Marni Schapiro, global head of commerce sales at Block, an Afterpay subsidiary, told NTD News. "During the holidays, a time when spending pressures are at their highest, our customers demonstrated that they can shop confidently and pay responsibly.”
What BNPL Brings to the Table
On-time payments signal strength in the BNPL sector, as more consumers opt for piecemeal payments. Those shoppers who want to get into the buy now, pay later market may want to consider these program upsides.
BNPL offers low initial spending limits
Buy now, pay later programs let new shoppers in with moderate payment limits, so they can’t blow their household budgets on BNPL-funded goods and services. The only way a consumer can raise their spending ceiling is through regular, on-time payments.
Financial hardship policies can kick in
BNPL consumers who are short on cash can leverage flexible payment plans without onerous late-payment fees. If a BNPL user skips a payment, their account is shuttered until the payment is made. Contrast that built-in financial safety feature with credit cards, which typically allow consumers to make purchases even after unpaid balances.
They offer financial flexibility
BNPL platforms enable users to better manage their monthly expenses if used correctly.
“Knowing an expensive purchase can be spread over several months allows households to apply the remaining balance elsewhere, such as stashing away in an interest-bearing savings account for unexpected expenses that may arise,” Greg Zakowicz, an e-commerce and retail adviser at Omnisend, told NTD News.
Good for larger purchases
For larger purchases, consumers may want the flexibility to pay over time without fear of interest, to manage their monthly budgets. “By spreading out purchases over time, shoppers actively paying off credit card debt can utilize the unspent funds to pay down their interest-bearing debt first,” Zakowicz noted.
Watch Out BNPL Downsides
Buy now, pay later programs carry risks for consumers who may feel they provide a sense of affordability for people with strict budgets, much like credit cards do. “For those who easily succumb to the dopamine rush from shopping, this can present compounding affordability challenges in the not-too-distant future,” Zakowicz said.
Buy now, pay later loans aren’t inherently good or bad; they're a financial tool that gives consumers options.
“Like any financial tool, it depends on how it’s used and who’s using it,” Kevin Carter, founder at retail discount company Tire Discount, told NTD News. “For a lot of consumers, BNPL fills a real gap between cash and traditional credit, especially for people who don’t have access to low-APR cards or flexible credit lines.”
The risk arises when people stack multiple BNPL plans without tracking them, which can quietly create budget pressure. “Used occasionally and intentionally, it can be helpful,” Carter added. “Used constantly as a lifestyle crutch, it becomes a problem.”
That’s why BNPL loans can be a useful financial tool for the average consumer if they’re treated as a budgeting tool rather than “free money.”
“The healthiest way to use BNPL loans is for planned purchases, limited to one or two active plans at a time, and only when the payments clearly fit into monthly cash flow,” Carter noted. “The guardrail is simple: if you wouldn’t comfortably afford it without BNPL, you probably shouldn’t use BNPL to justify it. When used with intention and limits, it can actually improve financial stability instead of hurting it.”
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.