Buy-Now, Pay-Later (BNPL) – where consumers are able to receive goods and services immediately but pay for them in instalments over a specified period (usually one to three months) without paying interest – has become popular in New Zealand and overseas. However, there are concerns that BNPL could be creating financial hardship for some consumers. Similar concerns have been noted in Australia and the United Kingdom.

This document highlights the relative benefits and costs (including financial hardship) from BNPL and how these could be addressed.