On March 2, 2023, the Consumer Financial Protection Bureau
(CFPB) issued a report (Report) exploring the financial
profiles of consumers of Buy Now, Pay Later (BNPL) products. The
Report is based on the CFPB's 2022 Making Ends Meet survey,
which included data from 2,036 consumers and data from credit
bureaus. Seventeen percent of survey respondents indicated that
they had made at least one BNPL purchase in the 12 months prior to
taking the survey.
The CFPB noted that BNPL borrowers were, "on average, much
more likely to be highly indebted, revolve on their credit cards,
have delinquencies in traditional credit products, and use
high-interest financial services such as payday, pawn, and
overdraft compared to non-BNPL borrowers." The CFPB
additionally noted that "BNPL borrowers had higher credit card
utilization rates and lower credit scores."
