You Can Now “Buy Now, Pay Later” For Almost Everything

Interest-free “buy now, pay later” programs are suddenly everywhere—is there a catch?

’Tis the season for shopping—and increasingly, splitting the bill. That $700 holiday haul? Just $175 today. From Klarna and Afterpay to Citi Flex Pay, buy now, pay later (BNPL) programs are popping up everywhere—making it easier than ever to spread out the cost of everything from gifts and groceries to vacations and everyday expenses.

With some promising zero interest, even financially savvy shoppers are getting in on the action. But before you congratulate yourself on a budgeting win, read the fine print. Because interest-free doesn’t always mean fee-free—and those manageable monthly payments can come with a price of their own.

But shoppers are buying in: Americans spent over $160 billion last year using BNPL plans, according to the Federal Reserve, and increasingly for everyday expenses—not just big-ticket splurges, but groceries, phone bills, shampoo and even rent.

Longtime Klarna user Gracie Owens tells RM she mainly uses it to purchase clothing. “Some people dislike [BNPL programs] because they believe if you don’t have the money to purchase the item in full, then you shouldn’t at all,” she says. “While I don’t completely disagree, it does allow me to treat myself on occasion without having to worry too much about spending a lot of money at once.” 

Financial coach Amy Bajada cautions the convenience can come at a cost. So, if you dabble in BNPL programs, how can you make sure both your piggy bank and credit score stay safe? While BNPL can be a useful financial tool, she says it can also go sideways when consumers overlook “the responsibility that comes with the power of using it as a financial resource.” Her advice? Live within your means and don’t make installment plans your only financial strategy. And just because something is available doesn’t mean it’s a smart move. 

The “treat yourself” sentiment is nothing new. Similar layaway programs have been around since the 1930s—originally gaining traction during the Great Depression—but unlike lenders of days past, today’s pay later programs will give you the goods right away. 

No interest, and the purchase handed over immediately? Sounds almost too good to be true—and depending on the fine print, it can be. Of the $160B spent, about half of it was on “pay-in-four” plans, allowing consumers to pay off their purchases in four installments over six weeks. 

Meanwhile, with credit card flex plans, you can choose your own pay adventure, spreading purchases over a set number of months for a fixed monthly plan fee. The catch? That flex fee isn’t a one-time charge—it’s tacked onto every monthly payment. Read: A $10 monthly fee on a 12-month plan adds $120 to your purchase, even if you never miss a payment. 

Suddenly, that interest-free financing isn’t looking quite so free. For shoppers who pride themselves on avoiding credit-card interest, those fees can add up to a surprisingly expensive workaround. And the costs don’t necessarily stop there. Depending on the program, missed payments can trigger late fees or other penalties—another potential hit to your wallet.

To wit, a recent survey found nearly half of BNPL customers missed a payment in 2025, with late fees stacking up to an effective annual percentage rate of 100% or more. For perspective, the average APR on U.S. credit card accounts in 2024 was ~23%, meaning BNPL consumers who miss payments are often paying more, despite interest-free purchasing, not to mention potential credit-score hits.

But it’s not just what you pay—it’s what you’re paying for, as it can be particularly defeating to make payments on something that’s already long gone. After all, nothing’s more depressing than paying off a DoorDash burger weekly, emphasizes one consumer. 

The bottom line? Breaking a purchase into smaller payments doesn’t make it cheaper. Before you click, calculate what you’ll actually pay—and whether the convenience is worth the cost.