Walmart has recently introduced a Buy Now, Pay Later (BNPL) service in collaboration with the tech company, One. This new payment option, available at over 4,600 Walmart stores nationwide, allows customers to make purchases between $100 and $3,000 and pay for them over time. The BNPL program is applicable to select categories such as electronics, jewelry, power tools, and automotive accessories, excluding groceries, alcohol, and weapons.
Although BNPL services have gained popularity, financial experts express concerns regarding their potential risks. The APR for One’s BNPL feature ranges from 9.99% to 35.99%, depending on the customer’s credit score. Missed payments can lead to debt collection and further financial strain. Financial planner Martha Callahan and personal finance expert George Kamel warn that BNPL programs can exacerbate financial difficulties, particularly for young people who may be enticed by the allure of deferred payments.
Despite these concerns, BNPL services are gaining traction both online and in-store. Adobe Analytics reports that BNPL programs generated over $19 billion in online spending between January and March 2024. In 2023, such payment options accounted for $75 billion of online spending. The convenience of BNPL may appeal to consumers seeking flexibility in managing their finances, but it is crucial to proceed with caution and consider the potential financial consequences before utilizing these services.
