Dollars and Sense: Banks turn on ‘buy now, pay later’ plans [Video]

SACRAMENTO, Calif. — ‘Buy now, pay later’ payment plans have grown significantly in popularity as a way for online shoppers to afford their purchases by only paying a portion of the cost upfront.

It appears banks are now starting to catch on to why shoppers like the plans and how lucrative they can be, even going so far as to ban third-party plans.

An expert ABC10 spoke with says there are still ways to manage spending by understanding why the changes are happening.

“This is really about building more of a competitive edge in the market for consumers,” said financial coach Maureen Paley.

Many shoppers have received notices from their bank alerting them customers will be banned from using their credit cards to pay for third-party “buy now, pay later” plans like Klarna and …