BNPL Delinquencies Climb as Lenders Tighten Underwriting
Late-payment rates on short-term installment loans are at multi-year highs.
Curated by Financing Your Way from original reporting by PYMNTS. Summary is AI-assisted and editorially reviewed — see our editorial standards.
Delinquency rates on buy-now-pay-later loans climbed again last quarter, according to fresh data from the major BNPL providers. For retailers, the practical effect is approval rates that have quietly tightened over the last 90 days — particularly on tickets over $500 and for repeat applicants. Merchants reporting flat sales should check whether their BNPL approval mix has shifted before assuming demand is the issue. Operators using lender-agnostic platforms are absorbing the change better, because second-look and lease-to-own providers in the waterfall keep capturing the customers prime BNPL is now declining.
Source: PYMNTS