Weight loss drugs, DoorDash are entering BNPL space. Is 'bite now, pay later' a good idea?

A Chipotle bid for the household done DoorDash? That’ll beryllium 4 installments of $11. Weight-loss medications similar Wegovy? You tin wage for the $1,000-plus cause done Affirm.

“Buy now, wage aboriginal tin beryllium translated into beauteous overmuch each facet of consumption,” Mizuho expert Dan Dolev told USA TODAY. “You tin bargain a car, you tin bargain a plane, oregon you tin conscionable bargain a sandwich.”

But is splitting nutrient transportation into 4 payments a bully idea?

The BNPL model, champion known for zero-interest loans repaid successful installments, has exploded successful caller years.

“BNPL is stepping into the mainstream arsenic a user recognition product,” said Ed deHaan, a prof astatine Stanford Graduate School of Business. "I don’t person immoderate crushed to deliberation the maturation is going to dilatory down.”

A 2025 study from the Consumer Financial Protection Bureau says astir 21% of consumers with a recognition grounds were utilizing BNPL from 1 of six large firms successful 2022, with 20% characterized arsenic "heavy users" who took retired astatine slightest 1 BNPL indebtedness connected mean each month. That's up from 17.6% of consumers successful 2021, with 18% considered dense users.

Preyas Desai, a prof astatine Duke University’s Fuqua School of Business successful North Carolina, said BNPL tin play a “valuable role” for immoderate consumers, particularly those with constricted entree to recognition cards.

“It could beryllium that they don’t similar to usage recognition cards oregon (haven't) acquired recognition cards,” helium said. “So they whitethorn person immoderate request for addressing their liquidity constraints successful the adjacent term, and that could beryllium a morganatic usage for BNPL.”

Experts who spoke to USA TODAY said that bargain now, wage aboriginal tin beryllium utile for those who usage it responsibly. But similar immoderate loan, there tin beryllium risks.

One, according to Desai, is overspending.

A 2023 survey co-authored by deHaan recovered BNPL users acquisition "rapid increases" successful slope overdraft charges and recognition paper involvement and fees compared to nonusers. Another 2022 moving insubstantial from Harvard researchers recovered BNPL usage tin pb to higher spending and a higher likelihood of dipping into savings.

“Consumers request to recognize this caller signifier of outgo and marque educated decisions,” Desai said. Users tin “stack BNPL connected apical of each different and get these loans from aggregate BNPL providers. So determination is immoderate hazard that radical mightiness beryllium capable to get habitualized to usage BNPL.”

CFBP recovered that 63% of bargain now, wage aboriginal borrowers successful 2022 originated aggregate loans simultaneously, with 33% taking retired loans crossed aggregate firms. The emblematic indebtedness that twelvemonth was little than $100 erstwhile adjusted for ostentation to 2024 dollars.