LAS VEGAS (KTNV) — You’ve probably seen it at checkout—“Buy Now, Pay Later” (BNPL) options that let you split your purchase into smaller, more manageable payments. They're easy to use and especially popular when shopping online. But financial experts are warning that the convenience might come at a cost.
Shakeria Hawkins takes a closer look at how this is changing the way Americans shop and the pitfalls you should watch out for.
Services like Klarna, Afterpay, and Affirm are becoming available for everything—from clothing and vacations to even everyday groceries. They’re designed to make purchases more affordable up front, but some consumers say they’ve ended up financially trapped.
“I think it’s just a rip-off,” said one Las Vegas resident. “I’d rather use a credit card or cash.”
Carlos Lopez, another Las Vegas resident, says he tried one of the services but regrets it.
“It didn’t work out for me,” Lopez said. “The payments felt like they kept piling up.”
Despite the concerns, many shoppers—particularly in their 20s and 30s—are turning to BNPL as a way to stretch their budgets.
“There’s a near-record amount of credit card debt. Interest rates are extremely high. That’s why many people are turning to Buy Now, Pay Later as an alternative,” said Ted Rossman, a Senior Industry Analyst with Bankrate.
Rossman says these services are often marketed as a more predictable form of borrowing. Unlike traditional credit cards, BNPL payment plans are usually fixed—so users know exactly what they owe and when. But that doesn’t mean they’re risk-free.
“There are a lot of variations,” Rossman explained. “Sometimes it’s four interest-free payments over six weeks. Sometimes the plans are longer. You really have to watch out for the interest rates—because sometimes they’re low, and sometimes they’re not.”
Consumer advocates say one of the major concerns is that BNPL services may encourage shoppers to finance things they normally would have paid for upfront, like a fast food meal or grocery run.
In fact, Klarna recently partnered with DoorDash to offer BNPL for food delivery orders.
“It’s still debt,” Rossman said. “Debt for a fast food order may not be the best choice.”
Rossman recommends using BNPL only for large, one-time purchases—like a refrigerator or other appliances—and warns against using the services for multiple items or everyday expenses.
Klarna also reported a $99 million net loss in the first quarter of 2025, raising questions about whether consumers are falling behind on payments.
“Buy Now, Pay Later has positioned itself as a kinder, gentler alternative to credit cards,” Rossman said. “But if you’re not budgeting carefully, you can still end up in trouble.”
While BNPL can be a helpful financial tool for some, experts say it’s important to use these services responsibly.
Avoid taking on too many installment plans at once, set payment reminders, and consider linking the payments to a debit card instead of a credit card.
