As holiday shopping ramps up, more Americans are turning to Buy Now, Pay Later (BNPL) services that split up purchases into smaller, timed installments.

Adobe Analytics predicts that more than $20 billion in online holiday purchases will be made with BNPL this year.

"Customers really like them because it really enables you to be a lot more flexible with how you're spending your money," said Jessica Roy, a personal finance columnist for our Hearst partners at the San Francisco Chronicle.

While these short-term loans offer convenience at checkout, financial experts warn they aren't risk-free. In May 2024, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that sought to apply credit-card style protections — such as dispute resolution and billing requirements —

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