Walmart will offer buy now, pay later (BNPL) options at self-checkout kiosks in more than 4,500 U.S. stores through an expanded partnership with Affirm.
Walmart and Affirm first partnered in 2019 to bring BNPL options to shoppers on its website and app. Indeed, until recently most BNPL offerings were relegated to the digital realm, but stores are widely seen as the next big area of expansion for this increasingly popular financing option.
Walmart is making a big move in that direction with the integration of BNPL financing at its self-checkout kiosks, allowing customers to pay over time for everything from electronics and apparel to toys and more. Customers also can access Affirm BNPL financing at Walmart Vision and Auto Centers.
“Recent Affirm research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout. Moreover, we’ve found that 76% of consumers would either delay or not make a purchase without Affirm,” said Pat Suh, SVP of Revenue at Affirm in a statement. “Expanding our partnership with Walmart and bringing Affirm’s transparent monthly pay-over-time options to their self-checkout kiosks in the U.S. will help even more consumers increase their purchasing power during the holiday shopping season and beyond.”
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The partners were careful to point out that with Affirm customers are always “shown the total cost of their purchase and will never pay more than they agree to upfront,” and also that “Affirm never charges any late or hidden fees.”
The Pros and Cons of BNPL
BNPL has been on a roll this holiday season, with consumers showing a “strong appetite” for the financing solution, according to data from Adobe Analytics. On Cyber Monday, BNPL usage hit an all-time high, contributing $940 million in online spend, an increase of 42.5% year over year. Adobe expects BNPL to set more records throughout the rest of the holiday season, driving a projected $17 billion in online spending, which would be an increase of nearly 17% from 2022.
While that’s good news for BNPL providers like Affirm and their retail partners, some consumer advocates are warning of potential dangers to consumers who may end up taking on more debt than they can manage. Demand for debt counseling services is already up significantly from last year, defying the typical seasonal slowdown during the holidays, Bruce McClary, a spokesman for the National Foundation for Credit Counseling, told Reuters. McClary added that the increased usage of BNPL “signals an increase of short-term debt on top of the more than $1 trillion in outstanding credit card balances,” a troubling indicator for 2024.
