Living
Shoppers Who Shun Credit Cards Will Still Borrow $20 for Candy
- Spending with buy-now, pay-later options has surged in U.S.
- Regulators have scrutinized fees at Afterpay, other providers
Photographer: Daniel Lois Photography/Getty Images
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Consumers are flocking to buy-now, pay-later offers as online shopping surges in response to the pandemic.
Take Emmanuelly Alvarado’s purchase of about $20 of Pica-Pica candy a month ago. As she clicked her way to the checkout button, an offer caught her eye: Instead of paying for the chamoy-flavored Mexican treats all at once, she could open an account with Afterpay Ltd. and finance it in four equal installments. After taxes and shipping, the company would automatically deduct about $6 from her account every two weeks.