Buy now, pay later (BNPL) schemes let consumers spread their spending over a number of interest-free instalments, which are typically unreported to credit bureaus. BNPL is growing strongly, especially in countries with strong e-commerce, higher inflation, inefficient banking systems and less stringent regulations. Used to a greater extent by young adults, who are typically heavily indebted and have low credit scores, BNPL schemes suffer higher delinquency rates than traditional consumer credit
