How ‘Buy Now, Pay Later’ Really Works

Money is tight these days. Holiday shopping, ballooning inflation, and a looming recession have forced people to more carefully consider their finances. Those factors might help explain the explosion of “buy now, pay later” services. BNPL plans offered by companies like Affirm, AfterPay, and Klarna let you spread the cost of a purchase—anything from a Peloton bike to a basket of groceries—over multiple installments, without the fees or interest rates of most credit cards. Of course, free money always comes with a catch.

This week on Gadget Lab, we dig into the buy now, pay later phenomenon and what it means for the future of shopping.

Show Notes

Read Lauren’s interview with Max Levchin. Check out more of WIRED’s reporting about buy now, pay later programs. Follow our coverage of all things ecommerce.

Recommendations

Michael Calore is @snackfight. Lauren is @LaurenGoode. Bling the main hotline at @GadgetLab. The show is produced by Boone Ashworth (@booneashworth). Our theme music is by Solar Keys.

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