Banks and credit card companies are wary of buy now, pay later plans. Here's why

Buy now, pay later plans are emerging as a popular alternative to credit cards. According to eMarketer, an estimated 86.5 million Americans used these loans in 2024, with the number projected to rise to 91.5 million in 2025. While consumers are embracing the trend, big banks and financial institutions remain cautious, seeing it as a direct threat to credit cards and a challenge in tracking borrowers’ credit histories.