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You don’t need a crystal ball to see it; consumer debt is climbing, and so is buyer hesitation.
A new report from Klarna, one of the biggest “buy now, pay later” (BNPL) services on the market, revealed a concerning trend: more of their users are missing payments. And it’s not just them. LendingTree and Bankrate have echoed the same message: Americans are falling behind on short-term installment loans.
What does that mean for businesses like yours?
Whether you’re running a wedding venue, planning honeymoons, or offering elective procedures, your customers are feeling the pinch. And if you’re relying on BNPL to help close the sale, you might actually be creating more friction than freedom.
Let’s break down what’s going on and how Clusivi’s Plan-to-Pay gives your business a smarter edge.
BNPL: Popular, But Problematic
BNPL grew fast, especially among Millennials and Gen Z. It promised flexibility without the baggage of traditional credit cards. But that promise came with fine print.
Here’s the reality:
- Missed payments are rising. Klarna’s latest earnings call admits growing trouble with repayment rates.
- Consumer debt is ballooning. U.S. consumer debt recently hit a record $18.2 trillion.
- Trust is eroding. Consumer advocates warn that BNPL lacks federal oversight, making refunds, disclosures, and fee transparency a gamble.
For providers, this is more than a finance headline, it’s a business risk. If your customer misses a payment, they may associate the negative experience with your brand. Worse, they may not come back at all.
What This Means for Providers
Imagine this: you’ve crafted the perfect wedding package, travel itinerary, or elective service plan. Your client is excited…until it’s time to pay.
BNPL might get them through the door, but if they can’t keep up with the backend payments, the emotional fallout lands on you:
- Refund requests.
- Negative reviews.
- Canceled services.
- Frustration directed at your team, not the BNPL provider.
Instead of building loyalty, you’re stuck managing damage control. And with trust being everything in high-value service industries, that’s a risk most businesses can’t afford.
Why Clusivi’s Plan-to-Pay Works Better
Clusivi flips the script. Instead of customers borrowing money and hoping they can pay it back, they pre-commit to a structured plan and gradually build toward their purchase.
Here’s why providers love it:
- Zero interest = Zero resentment
Your clients don’t rack up charges or fees. There’s no nasty surprise waiting after the big day or dream trip. Just peace of mind. - Financial readiness upfront
Clients pay in advance, reaching a milestone before you even provide the service. This means fewer cancellations, less financial ghosting, and more reliable revenue for your business. - No lender, no liability
Clusivi isn’t a loan. It’s a financial commitment built on discipline and trust—not debt. You’re not putting your business at the mercy of a third-party lender’s approval process. - Boosted confidence = higher conversions
When customers know they can plan and pay at their own pace, they’re more likely to commit. That means more bookings, more upgrades, and more referrals.
What Industries Can Learn From Klarna’s Report
If your business thrives on life-stage moments, weddings, once-in-a-lifetime trips, or transformative procedures, you’re dealing with emotionally charged decisions.
BNPL might seem like a win, but it’s often a temporary fix to a long-term problem: affordability. And when customers hit that payment wall post-purchase, the emotional hangover often spills into how they view your brand.
Clusivi helps you avoid that trap. Instead of pushing your clients into financing they may not understand or afford, you’re empowering them to plan ahead. That builds trust, reduces payment friction, and keeps your reputation strong.
The Bottom Line
Klarna’s recent report is a wake-up call. The “buy now, worry later” mindset is cracking, and businesses that depend on it risk going down with the model.
If you want to future-proof your business and build stronger client relationships, it’s time to rethink how you help people afford what you offer.
Clusivi’s Plan-to-Pay model puts your clients on solid financial ground before they commit. And when they’re ready, you can deliver a world-class experience without a cloud of debt hanging over the moment.
Ready to leave BNPL behind? Let’s build a better payment future together.
