Walmart Adds New Payment Option to Self-Checkout, But Experts Urge Caution
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Essentially, this means shoppers will now be able to pay for their in-store or online Walmart purchases over a specific period of months, if they choose to pay with Affirm. The network doesn’t charge late or hidden fees, but customers will accrue interest for paying over time, per Affirm’s website. That amount will be determined and explained at checkout.
The release didn’t specify whether Walmart customers will need to spend a certain amount in order to qualify for BNPL—Target has a $100 minimum for Affirm purchases—but it did note that shoppers will also be able to pay with Affirm in the Walmart app, as well as at Walmart Vision and Auto Centers.
BNPL methods like Affirm, Afterpay, and Klarna can be a lifesaver when money is tight. At the same time, financial experts are urging people to tread carefully, as pay over time programs such as these can lead to an overwhelming amount of debt, overspending, and, in certain cases, data collecting.
Speaking with Scripps News , Steward Willis, co-founder and co-owner of Asset Preservation Tax and Retirement Services, explained that Gen Z and millennials are likely to suffer from these programs the most, because they may not yet have the aptitude for financial planning or disposable incomes.
“The people that need it most easily are the ones most susceptible to this kind of abuse as well. So we don’t want you to get in over your head,” Willis told the news outlet. “You want to have a real plan and at the end of the day it’s always best to pay by cash.”
RELATED: Finance Expert Warns Afterpay Could Drop Your Credit Score by 100 Points .
The terms and conditions of BNPL programs vary by network. While some may offer interest-free loans, others can charge interest but allow late payments without penalty.
In 2021, the Consumer Financial Protection Bureau put out a report that found that 10.5 percent of BNPL users were slammed with a late fee that year. Consumer protections were also inconsistent, and overextension was becoming more common as well.
Best Life reached out to Walmart for more information on the BNPL option at self-checkout, and whether customers should be cautious about using it given concerns from financial experts. We will update this story with their response. In the meantime, you can follow these experts’ advice by always reading the fine print, and having a plan in place to pay off the total in full as soon as possible.
Best Life offers the most up-to-date financial information from top experts and the latest news and research, but our content is not meant to be a substitute for professional guidance. When it comes to the money you’re spending, saving, or investing, always consult your financial advisor directly.
- Source: Consumer Financial Protection Bureau: CFPB Study Details the Rapid Growth of “Buy Now, Pay Later” Lending
