Buy now/pay later loans boomed during the pandemic as BNPL fintechs introduced a turnkey way for consumers with little or no credit to make purchases online, creating a phenomenon that continues to have major repercussions.

Some setbacks have cropped up for big BNPL fintechs like Affirm and Klarna, which have undergone sharp market devaluations in recent months in response to rising inflation, higher interest rates and intensified competition. The Consumer Financial Protection Bureau also recently said it may develop guidelines to rein in BNPL lenders whose practices are mostly unregulated.

But the popularity of buy now/pay later loans is undeniable, as more than half of U.S. consumers have tried a BNPL loan and more than 90% of users report being satisfied with the concept, according to a poll conducted among 2,200 U.S. adults by Morning Consult on behalf of the Financial Technology Association between Sept. 1 and Sept. 3, 2022.