Evolve Bank & Trust discussed using buy now, pay later for holiday gift purchases in consumer guidance published on February 27, 2023. The article explains installment checkout and emphasizes accounting for the full purchase price when planning repayments.

The bank names Affirm and Klarna as examples of companies working with retailers to offer BNPL at checkout. It describes a common four-installment arrangement with payments two weeks apart, beginning at checkout, and interest-free options when the relevant payment conditions are met.

Evolve’s central budgeting concern is that several small installments can obscure the amount a shopper has committed to repay. It recommends selecting a limited number of larger purchases for installment payment and choosing a schedule that fits the shopper’s actual ability to pay.

The article also advises keeping a record of due dates and outstanding balances. It warns that missed payments can lead to fees and credit consequences, and distinguishes spreading a purchase over time from increasing the amount a household can afford to spend.