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Buy now, pay later: a cross-country analysis

Author

Listed:
  • Giulio Cornelli
  • Leonardo Gambacorta
  • Livia Pancotto

Abstract

Buy now, pay later (BNPL) schemes let consumers spread their spending over a number of interest-free instalments, which are typically unreported to credit bureaus. BNPL is growing strongly, especially in countries with strong e-commerce, higher inflation, inefficient banking systems and less stringent regulations. Used to a greater extent by young adults, who are typically heavily indebted and have low credit scores, BNPL schemes suffer higher delinquency rates than traditional consumer credit.

Suggested Citation

  • Giulio Cornelli & Leonardo Gambacorta & Livia Pancotto, 2023. "Buy now, pay later: a cross-country analysis," BIS Quarterly Review, Bank for International Settlements, December.
    • Handle: RePEc:bis:bisqtr:2312e
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    References listed on IDEAS

    as
    1. Jon Frost & Leonardo Gambacorta & Yi Huang & Hyun Song Shin & Pablo Zbinden, 2019. "BigTech and the changing structure of financial intermediation," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 761-799.
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    4. Gambacorta, Leonardo, 2008. "How do banks set interest rates?," European Economic Review, Elsevier, vol. 52(5), pages 792-819, July.
    5. Annamaria Lusardi & Olivia S. Mitchell, 2023. "The Importance of Financial Literacy: Opening a New Field," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 137-154, Fall.
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G50 - Financial Economics - - Household Finance - - - General
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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