Bloomberg Surveillance · Friday, August 7, 2026
Buy Now, Pay Later (BNPL) services are increasingly replacing traditional credit cards for younger generations like Gen Z and younger millennials, who are less accustomed to revolving credit due to stricter regulations since 2010. Merchants are now paying the fees for BNPL services, making it a more appealing option.
“I think the buy now, pay later replace the credit card. And what what I never saw coming was the fact that the merchants are paying the fees right, they're you know, they're paying a firm. And so what happened in twenty ten, and not to get to technical, but the. Card at Friday, don't get technical. When we were in college, we got solicited by every credit card out there. When we graduated, we had credit card debt. In twenty ten that changed so unless you got a co signed by your parent, if you were under twenty one, you couldn't get a credit card. So this generation of Gen Z and younger millennials aren't used to revolving credit, so they're they're actually buy now, pay later is more appealing to them, even though sometimes it's the same thing.”