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A 2023 report by the Consumer Financial Protection Bureau highlighted that many users of BNPL schemes possess subprime credit scores, making them particularly vulnerable to the pitfalls of debt. Many users also reported experiencing additional stress due to the aggressive penalties incurred from missed or delayed payments. In fact, one study noted that one in three BNPL customers had paid late in the past year.
The structural setup of BNPL resembles that of a mortgage but is applied to items that generally depreciate quickly, such as clothing or fast food. This mismatch of financing smaller, non-appreciating assets against a mortgage-like framework invites consumers to lose sight of their financial responsibilities, similar to the conditions leading to the 2008 mortgage crisis.