“Buy now, pay later”In recent years, this expression has appeared frequently in discussions about financial innovation and reflects the very concept of credit: buy now and pay later, that is, bringing consumption forward in time. There are several financial products that allow this intertemporal transaction, such as traditional credit cards, widely known in the Brazilian market.
More specifically, however, “buy now, pay later” (BNPL) designates a new form of consumption anticipation differs significantly from traditional financing and credit cards. The expression already suggests that the phenomenon goes far beyond the Brazilian market. By 2026, regulatory adjustments are expected to discipline the use of this modality in countries where the model is more consolidated.
In practice, BNPL is a short-term financing option in which credit analysis is performed at the time of purchase. The modality could be compared to a credit card, with an important difference: the automation and speed of the financing approval process. With the purchase approved and the payment method defined (invoice or PIX, in the Brazilian case), automation is also necessary in the customer's billing flow.
This payment option has been gaining ground in online retail, where consumers value a good user experience, security, and convenience. As a form of payment, the "buy now, pay later" reduces some frictions of online shopping, eliminating the need to register credit cards, which, in some cases, can cause insecurity. Facilitating payments tends to increase retail sales conversions.
Although Brazil has a well-established culture of short-term instalments, BNPL is still maturing in the country. Interestingly, where the culture of instalments is less present, this modality is more established.
According to data from the Global Payment Report, published by Worldpay, the value handled by the BNPL modality in 2024 was US$ 342 billion, which corresponds to 5% of the global value transacted in e-commerce. Regional data shows that BNPL accounted for about 8% of the value transacted by e-commerce in Europe in 2024 and 6% in the United States. In Latin America, the results are even more modest: the modality represents about 1% of the value transacted. Brazil has the same percentage. In the Asia-Pacific market, the percentage was 4%, with Australia (15%) standing out.
In the American market, data from the Consumer Financial Protection Bureau (CFPB) released in December 2025 provide a measure of default in this method: the percentage of loans considered delinquent fell from 2.63% in 2022 to 1.83% in 2023.
These numbers lead to considerations about the risks associated with the indiscriminate use of instalment plans. Using this type of payment as a way to increase pre-approved limits carries the risk of over-indebtedness. A point of attention in the use of this modality is debt management when the consumer resorts to several instalments plans. One concern of the Brazilian Central Bank regarding PIX is the accumulation of debts when instalment expenses are added together. In December, the BCB board communicated that there may be no regulation of this modality. In this regard, the credit card has the advantage of consolidating the information on the invoice, making it easier to control.
Given this risk, the main economies are moving towards approving specific regulations on this method. In the European Union, where BNPL has evolved in the cross-border dimension, the update of the Consumer Credit Directive (CCD2) should include rules on the operation of BNPL, highlighting credit analysis as a requirement for the transaction approval and clear communication to consumers about the risks and costs involved in this modality. The new rules are expected to come into force in the second half of 2026.
The current stage of credit information systems in Brazil favours the growth of this modality, combining positive and negative data. The bureau sector understands that agile and well-founded credit analysis is essential for the development of BNPL in the country. BNPL data already impacts analysis and fraud in the credit ecosystem, bringing more assertiveness. In the United States, among consumers with more than five BNPL transactions, 23% lowered their credit rating and 45% increased their score. In the virtual environment, where this modality is most present, fraud prevention is also a fundamental requirement in the evaluation process.
Even though credit takes on new forms, the general principles remain valid. Transactions are subject to risks that can compromise financial institutions, lead to over-indebtedness and, ultimately, generate systemic risk. As in other modalities, credit discipline must also be observed in BNPL, ensuring consumers the convenience of choosing between several payment options, without compromising their financial health.
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