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Buy now, pay later (BNPL) …on your credit card

Guttman-Kenney, Benedict; Firth, Chris; Gathergood, John


Benedict Guttman-Kenney

Chris Firth


We provide the first economic research on ‘buy now, pay later’ (BNPL): an unregulated FinTech credit product enabling consumers to defer payments into interest-free instalments. We study BNPL using UK credit card transaction data. We document consumers charging BNPL transactions to their credit card. Charging of BNPL to credit cards is most prevalent among younger consumers and those living in the most deprived geographies. Charging a 0% interest, amortizing BNPL debt to credit cards – where typical interest rates are 20% and amortization schedules decades-long – raises doubts on these consumers’ ability to pay for BNPL. This prompts a regulatory question as to whether consumers should be allowed to refinance their unsecured debt.


Guttman-Kenney, B., Firth, C., & Gathergood, J. (2023). Buy now, pay later (BNPL) …on your credit card. Journal of Behavioral and Experimental Finance, 37, Article 100788.

Journal Article Type Article
Acceptance Date Jan 6, 2023
Online Publication Date Jan 16, 2023
Publication Date Jan 16, 2023
Deposit Date Jan 9, 2023
Publicly Available Date Jul 17, 2024
Journal Journal of Behavioral and Experimental Finance
Print ISSN 2214-6350
Electronic ISSN 2214-6369
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 37
Article Number 100788
Keywords Finance
Public URL
Publisher URL
Additional Information This article is maintained by: Elsevier; Article Title: Buy now, pay later (BNPL) ...on your credit card; Journal Title: Journal of Behavioral and Experimental Finance; CrossRef DOI link to publisher maintained version:; Content Type: article; Copyright: © 2023 The Author(s). Published by Elsevier B.V.


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