CORPUS CHRISTI, Texas — The holidays are expensive, and checkout counters now offer more payment options than ever: cash, credit, or buy now, pay later. While cash and credit are traditional methods, more people say spreading payments out is helping them enjoy the season without breaking their budget.
Buy now, pay later apps have become increasingly visible while shopping online and in stores. For Arturo Pena III, a college student, these payment options weren't something he initially considered until he found himself in a specific situation.
"I never paid much attention to it until I was in that position where I was like okay I really want this, I don't have the money for it, but I will" Pena said.
With the holidays now in full swing, how you pay can make a significant difference in managing expenses. Buy now, pay later options are appearing more frequently across various platforms. Some popular apps include: Klarna, Affirm, Afterpay, PayPal and Zip.
"Even at some stores they have Klarna which is a popular buy now pay later option. Even on the TikTok shop I started to buy gifts there for Christmas and they had the option Affirm," Pena said.
Pena typically uses these services for bigger purchases or items he knows won't be available for long periods.
"I really wanted some Wicked Owala bottles that were limited edition and I knew I had to get them," Pena said.
The most common setup is called a "pay in four" system, which splits purchases into four interest-free payments. When payment due dates arrive, Pena manages them like any other bill by using auto pay and monitoring email reminders.
"They'll send you an email either a week before or couple of days before saying hey your payment is coming up," Pena said.
Like most bills, payments can be made early if desired. Pena often pays ahead of schedule to get payments out of the way.
His payments typically range between $15 and $30 at most, which he considers similar to everyday expenses.
"Usually I tell myself you know what? I pay $30 to pump gas or if it's $15 I get myself a $15 meal at Chic-Fil-A or Whataburger," Pena said.
Each buy now, pay later app comes with different rules and payment options, making it important to read the fine print before committing to any service.
Consumer experts say the best option fits your budget and is easy to track.
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