Walmart to Enter Crowded Buy Now, Pay Later Space

Andy Spears
2 min readDec 17, 2022

Will short-term loans become a new profit center for the retail giant?

Photo by Nathália Rosa on Unsplash

Buy Now, Pay Later is everywhere — online, at point of sale, anywhere consumers are spending more than $100 it seems, there’s an option to pay in four installments. Companies like Klarna, Afterpay, Affirm, Sezzle, and more are the key players in this space.

Now, Walmart is getting in on the act. Retail Bum reports that Walmart will launch a BNPL product in 2023.

Walmart to Roll Out Buy Now, Pay Later Solution in 2023 — Retail Bum | by Retail Bum | Dec, 2022 | Medium

The move comes as the store — one of America’s largest grocers — seeks to capture some of the revenue currently going to other BNPL providers used by Walmart customers.

In fact, reports indicate that more and more consumers are using BNPL to handle the rising cost of groceries.

While the BNPL products can be a convenient and affordable way to handle a single short-term expense, when consumers end up with multiple BNPL loans, they could encounter problems.

In fact, one survey suggests that 20% of BNPL users later regret having used the loan.

That same survey says that BNPL users also end up with multiple loans and the payments end up putting strain on their budgets:

32% of Buy Now Pay Later plan users have had to skip paying an essential bill such as rent, utilities or child support in order to make their payments. Even after that, 30% report that they’ve struggled to make their payments.

The Takeaway

One BNPL loan for an unplanned expense or a one-time splurge can be an affordable way to manage finances. Be aware of payment due dates and be sure to pay on time.

Taking out multiple BNPL loans can be a recipe for financial stress and budget strain.

Want more consumer news? Check out my newsletter!



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .