DMV LOCAL RECAP: Buy Now, Pay Later Expands to Everyday Bills

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Buy now, pay later isn’t just for clothes, sneakers and electronics anymore. As Americans continue looking for ways to manage rising everyday expenses, installment payment services are increasingly moving into essential bills.

Companies in the buy now, pay later (BNPL) space are expanding financing options that can be used for expenses including utilities, mobile phone service, health-related costs and other recurring bills.

Affirm, for example, has reportedly offered some consumers options that can extend the timeline for making monthly rent payments. The company also promotes installment payment options for purchases such as back-to-school supplies. The trend is also reaching higher education.

PayPal recently announced new digital payment options involving several universities, including Kansas State University and Michigan State University. Participating schools can determine which payment methods they accept and what fees apply. Options involving PayPal and Venmo could make it easier for students and families to handle large education expenses digitally.

The expansion marks a major shift for services many consumers first encountered while shopping online. BNPL platforms typically allow customers to divide a purchase into several payments rather than paying the entire amount upfront.

But using installment loans for necessities can come with risks. Consumers should pay close attention to repayment schedules, fees, interest and the possibility of taking on multiple payment obligations at once.

For households already stretching their budgets, however, the growing number of payment options reflects a larger reality: people are looking for new ways to cover everything from school supplies to monthly household expenses.

Before using any BNPL service, make sure you understand the total cost and when every payment is due.