Installment plans are back in style. One reason: shoppers who don’t qualify for credit cards. Buy-now-pay-later companies say they rely less on—and in some cases bypass altogether—traditional credit scores and reports. Doing so allows them to approve more consumers. Shoppers gain the ability to buy things even without cash on hand—translating to higher sales for retailers.
“The value that most retailers see in buy now, pay later is customer acquisition,” said David Sykes, Klarna’s North America head.