bnpl is making everything more expensive — here's the math
Buy now, pay later services like Klarna and Sezzle charge merchants up to three times the swipe fees of credit cards. Those costs get passed to you. If you're tracking expenses, you need a tool that actually helps — not another layer of hidden fees.
buy now, pay later sounds like a good deal. pay in four installments, no interest (if you're on time). but here's the thing: nothing is free.
a new report from consumer advocacy group Protect Borrowers says BNPL lenders charge merchants fees that are up to three times higher than credit card swipe fees. and guess who pays for that? you. always you.
the hidden cost of "free" installments
retailers aren't charities. when Klarna or Sezzle takes a 6% cut instead of the 2% Visa takes, that extra 4% gets baked into the price of everything you buy. whether you use BNPL or not, you're subsidizing someone else's installment plan.
"There is nothing to substantiate the claim that BNPL merchant fees are passed along to consumers," Phil Goldfeder, CEO of the American Fintech Council, told Payments Dive.
sorry Phil, but that's just not how retail works. margins are thin. costs get passed down. it's basic economics.
late fees are the real trap
here's where it gets ugly. 47% of BNPL users have been late on a payment in the past year, according to LendingTree. that's up from 41% in 2025 and 34% in 2024. the trend is clear: people are struggling.
24/7 Wall St. calculates that BNPL late fees can equate to an APR of 100% or higher. think about that. a product marketed as "interest-free" can effectively charge you credit card-level interest if you slip up once.
and more people are using BNPL for essentials — groceries, utilities. not luxury handbags. when you're financing your weekly food shop, you're already in a precarious position.
what this means for your personal finances
the takeaway is simple: every payment method has a cost. credit cards have annual fees and interest. BNPL has hidden merchant fees and brutal late penalties. cash has... well, cash is fine but you lose the receipt.
if you're trying to keep track of where your money goes — and you should be — you need a system that doesn't add friction. that's where ccLuca comes in.
snap a photo of any receipt, get the data extracted by AI in 3 seconds. no manual entry. no spreadsheets. just you and your expenses, sorted. it's built for individuals and small teams who don't want enterprise software. zero setup.
the bottom line
BNPL is growing fast — 44% of Americans expect to use it in the next six months. but the costs are real, and they're hidden. whether you're paying with Klarna or a credit card, you're still paying. the only difference is how much you know about it.
track your actual spending. don't let payment methods trick you into thinking you're saving money when you're not.