The Hidden Cost of “Buy Now, Pay Later” Services

Introduction: BNPL in 2025

Buy Now, Pay Later (BNPL) services like Afterpay are popular, but hidden costs like fees and overspending add up, per CFPB 2024 report. This guide uncovers the costs and how Onu’s AI helps avoid them for smarter spending.

With Onu, BNPL is safe and controlled.

Hidden BNPL Costs

Costs beyond interest-free, per NerdWallet:

• Late Fees: $7–$10 per missed payment.
• Overspending: Encourages 20% more purchases.
• Credit Impact: Late payments hurt scores.

Example: $200 BNPL purchase with $20 late fee adds 10% cost.

BNPL Cost Breakdown

Average costs, per Forbes:

Insight: Hidden costs can exceed 10% of purchase.

Step-by-Step: Avoiding BNPL Costs

30-day plan to use BNPL wisely:

1. Audit Purchases (Days 1–5): List BNPL uses with Onu. Example: $100 clothing.
2. Understand Fees (Days 6–10): Review terms. Example: Note $8 late fee.
3. Alternative Savings (Days 11–15): Set sinking fund. Example: Save $50/month.
4. Automate Alerts (Days 16–20): Onu flags BNPL. Example: Alert on high fees.
5. Limit Use (Days 21–25): Only essentials. Example: Avoid impulse.
6. Review (Days 26–30): Assess costs. Example: Switch to cash.

Real-Life Example: Avoiding BNPL Costs

Meet Tom, BNPL user:

• Audit: Found $30/month fees.
• Understand: Reviewed late fees.
• Alternatives: Onu set savings fund.
• Alerts: Flagged overspend.
• Limit: Reduced BNPL use.

Result: Saved $360/year in fees.

Financial Impact of BNPL

Costs:

• Fees: $100/year average.
• Debt: Leads to cycle.

Example: $200 purchase with $40 fees costs 20% more.

Context: BNPL in 2025

Trends from CFPB:

• Growth: $50 billion market.
• Regulation: More fee transparency.

Example: 30% users miss payments.

Final Thoughts

BNPL has hidden costs, but Onu’s AI helps avoid them. Shop smarter today.

Sources: CFPB (2024), NerdWallet (2024), Forbes (2025). This article is for informational purposes only and not financial, legal, or tax advice.