BNPL Firms Challenge Banks with Debit Cards and Deposit Accounts

Buy now, pay later (BNPL) providers such as Klarna, Affirm, and Afterpay are expanding their services to include traditional bank offerings like debit cards and deposit accounts. This move widens their consumer reach and opens up competition for banks. BNPL firms were originally known for interest-free financing, but now offer interest-bearing installment loans. Banks are responding by launching their own BNPL products.