Research on Buy Now Pay Later Impacts on Retail Pricing and Inventory
Academic research from Washington University in St. Louis examines how 'buy now, pay later' financing structures influence consumer behavior, retail price adjustments, and inventory management.
Aggregated from 2 sources · Updated 26 Aug 2026, 04:03 UTC (UTC)
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Facts (7)
- EstablishedNiche Signal
Research titled 'Buy Now, Pay Later: The Hidden Effects of Consumer Liquidity on Retail Prices and Inventories' by Naveed Chehrazi, Panos Kouvelis, and Wenhui Zhao is forthcoming in the journal Management Science.
- EstablishedNiche Signal
Approximately 91.5 million Americans used a 'buy now, pay later' (BNPL) plan in 2025 according to LendingTree data.
- EstablishedNiche Signal
Federal Reserve Bank of Richmond estimates suggest BNPL purchases reached approximately $70 billion in 2025, accounting for roughly 1% of U.S. credit-card spending.
- EmergingNiche Signal
The study indicates that retailers may raise sticker prices to compensate for the fees charged by financing companies such as Klarna, Affirm, and Afterpay.
- EmergingNiche Signal
Retailers utilize BNPL options to reduce the frequency of abandoned purchases and to increase the total value of consumer shopping baskets.
- Emerging
The research suggests that BNPL implementation has consequences for retail inventory decisions and the financial burden placed on consumers.
- AttributionNiche Signal
Professor Panos Kouvelis states that BNPL buttons target a consumer's immediate ability to pay rather than their total willingness to pay.