Want more proof that the Buy Now, Pay Later (BNPL) craze isn’t going away anytime soon? A fintech company backed by Walmart has started offering BNPL inside some of the retail giants brick-and-mortar stores on purchases of at least $100.
The company, called One, is offering BNPL on big-ticket items at the store like electronics and power tools. Walmart had been offering Affirm’s BNPL service in stores and online and will continue to do so for the time-being, according to published reports. Given that it has invested in One, though, likely means that Walmart will begin giving its BNPL preferential treatment at registers and online.
Walmart’s Chief Executive said during a recent interview that consumers are feeling stressed.
“We’ve got some customers who are more budget-conscious that have been under inflation pressure now for months,” said Doug McMillion. “That sustained pressure in some categories, I think, is something customers are having to deal with as we approach Christmas.”
One’s goal is to be an all-in-one app that helps consumers manage their money.
BNPL allows consumers to spread out the purchase of an item into four or six equal payments over a relatively short timespan, like two months. It has gained popularity in recent years as more online retailers have been offering it to consumers when they check out on their websites. It accounted for $75 billion in online spending last year, according to one estimate.
There are financial downsides to the product, experts warn, because consumers need to make sure they have the money to cover the payments as they are withdrawn from their accounts. Missed payments are usually handed over to debt collectors.
Perhaps as a nod to this challenge from One as well as just more competition in the BNPL market, Affirm announced yesterday that it was going to begin offering its services for elective medical procedures.
