News Credit Card News Barclays Joins ‘Buy Now, Pay Later’ Boom By Rob Anthes Published on April 27, 2021 Photo: Luis Alvarez / Getty Images A major bank has jumped onto the “buy now, pay later” bandwagon, and plans to roll branded installment options out to merchants in the coming months. Barclays US Consumer Bank announced Tuesday that it has teamed with fintech Amount to develop point-of-sale (POS) financing installment options that would allow consumers to pay for eligible purchases on installment payment plans rather than paying in full. The bank, which offers credit cards for brands like Barnes & Noble and the National Football League, said it will also give merchants using its network the option to offer installment plans under their own brands later this year. Barclays said it is one of the first major banks to offer buy now, pay later (BNPL) options, as well as one of the first providers to let companies offer POS payments under their own brands. Barclays did not announce which merchants might use the system. BNPL options have boomed during the pandemic. Analysts with Kaleido Intelligence estimated the amount spent with them annually will nearly double to $680 billion between 2019 and 2025. Companies like Affirm, Klarna, AfterPay, Amazon, and PayPal have popularized the installment plans, particularly with customers who want to spread payments over time without using their credit cards. Usually, BNPL installment plans involve a short, interest-free loan, with fees and/or interest assessed if you don’t pay on time. “The rise of mobile and online shopping combined with an increase in digital adoption was quickly accelerated by the global pandemic," Amount CEO Adam Hughes said in a statement. "This has created an environment in which POS is the next battleground in consumer financing, wherein banks are well positioned to compete given their stability and cost-of-capital advantages.” Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. PR Newswire. "Barclays US Consumer Bank Expands Point-of-Sale Financing Suite to Include Installment Options Powered by Amount." Kaleido Intelligence. "Buy Now Pay Later Digital Spend, Led by Klarna, PayPal & AfterPay, to Double by 2025: Reaching $680 Billion."