Julie Morgan

The Federal Reserve Bank of St.

Louis says the revenue for the firms and Klarna's of the world comes primarily from the fees they charge retailers for using buy now, pay later services.

It notes the fees are often higher than those charged by credit card companies, but retailers are willing to pay these fees to increase sales.

So something must be working.

Buy Now, Pay Later is an option for regular everyday purchases like groceries.

You can even pay for a vacation over time.

Not to mention something that has been on repeat in my news feed for the past couple of weeks.

Rent Now, Pay Later.

Yes, you can now split your rent into two payments.

The Fed's latest information about the economic well-being of U.S.

households was published last summer for 2024.

It showed that 19% of 18 to 29-year-olds have used Buy Now, Pay Later.

The same percentage holds true for those 30 to 44.

The number drops to 16% for those 45 to 59, and 8% for 60 and older.

How many of them made late payments on a Buy Now, Pay Later program?

For the youngest demographic, 32%.

The next oldest, 25%.

For those 45 to 59, the number drops to 21% who said they made a late payment.

And for the oldest demographic, 12% made at least one payment after the due date.

There's a question about whether the consumer's financial house is in order based on their use of Buy Now Pay Later.