Buy Now Pay Later (BNPL) in the US: User Growth, Trends & Insights

TL/DR summary

BNPL is entrenched in US commerce. Tens of millions of consumers used pay later in 2024, holiday spend set records, and multi‑lender behaviour is common. The next phase is about getting the economics right—clear terms, responsible credit, and mobile‑first flows.

Quick hits

• 86.5M users in 2024; ~105M by 2028.

• $18.2B holiday BNPL spend in 2024; $991.2M on Cyber Monday.

• 63% hold multiple BNPL loans concurrently; 33% use multiple lenders.

• 48% intend to reuse the same BNPL service; convenience is the top driver.

• Mobile accounts for ~79% of holiday BNPL purchases.

Make BNPL a first‑class payment method with transparent total cost, frictionless mobile UX, and strong risk controls. The merchants who do this will lift conversion without inviting unnecessary repayment risk.

Introduction

Buy now pay later (BNPL) has moved from a checkout add‑on to a mainstream payment method that now shapes conversion, average order value, and customer lifetime value across US retail. In 2024, the number of buy now pay later US users reached scale, reflecting shifting consumer preferences for smaller payments, transparent terms, and flexible cash flow. The BNPL user data saw a rise, especially during peak shopping periods.

For businesses, understanding who is using pay later, how often, and under what conditions is no longer optional; it is central to pricing, risk controls, and merchandising. This article distils the latest data on BNPL users, adoption drivers, and usage patterns, then translates the trends into practical implications for product, finance, and growth teams.

The US BNPL user base: Size, trajectory, and what it signals

The BNPL market has expanded alongside online shopping and omnichannel retail. With 86.5 million BNPL users in 2024 and momentum pointing to roughly 105 million new users by 2028, adoption is broadening from early adopters to the mass market. This is consistent with a global BNPL market that surpassed $340 billion in 2024 and continues to compound.

As BNPL usage scales, payments, credit, and growth teams need to model cohort‑level default risk, late fee exposure, and settlement timing. Marketing should segment by age groups, credit scores, and purchase intent to balance conversion with total cost of acquisition and repayment risk.

Adoption by age, income, and credit health

BNPL adoption skews younger but is not youth‑only. Millennials (33.6%) and Gen Z (26.4%) account for a large share of BNPL users. At the same time, lower credit scores are associated with greater BNPL credit usage.

A survey found that 26.6% of users by choice have incomes between $50k–$100k, while 26.9% who used BNPL out of necessity have incomes below $50k. Nearly 30% of adults with credit scores between 620 and 659 used BNPL. It was roughly triple the rate of those above 720. This implies that credit checks and responsible messaging are essential.

Demographically, adoption varies: for example, Black Americans show the highest usage among racial cohorts. For product teams, this means tailoring instalment plans and education to consumer preferences across segments, while finance teams recalibrate loss allowances as credit health varies.

Usage patterns: Frequency, providers, and behavioural flags

BNPL purchases are habitual for many. In October 2024, half of Americans had been offered a buy now, pay later option in the past 30 days. Out of them, 10% made at least one purchase during that period.

Multi‑lender behavior is the norm. Approximately 63% have multiple BNPL loans active at the same time, 33% use more than one BNPL provider, and 48% intend to reuse the same platform. 

This creates both loyalty and risk: multiple simultaneous loans can obscure affordability signals. Hence, retailers should surface total cost, due dates, and repayment status in‑app to reduce missed payments and late payments.

Spend, seasonality, and channels.

BNPL peaks during gifting cycles and big promos. Consumers spent $18.2B via BNPL during the 2024 holiday season; Cyber Monday alone saw $991.2M.

Mobile now dominates pay-later services: 79.12% of holiday transactions were made on phones, which should influence mobile UX, fraud posture, and messaging.

Apparel and electronics lead the category mix, while everyday purchases and food deliveries are increasingly included in the basket. It extends BNPL beyond one‑off splurges into routine payment method choices.

Affordability, fees, and credit hygiene

BNPL can improve cash flow through interest-free payments when used responsibly, but late payments and missed payments still occur.

About 24% of users report overspending with BNPL, and 16% report late payments or missed payments. Transparency about interest rates (when applicable), consumer fees, and late fees (plus reminders and autopay) can reduce delinquency.

Providers and retailers should emphasise total cost, repayment calendars, and what appears (or does not) on the credit record. Clear disclosures protect both shoppers and retail accounts.

Providers and product design

Several companies now anchor the US landscape, ranging from BNPL lenders embedded in merchant checkouts to wallets such as PayPal Pay and Apple Pay later service options.

Differences in settlement timing, chargeback handling, and risk‑sharing are material to margin. Some BNPL providers shift portions of default risk back to merchants; others batch settlements in ways that affect cash flow.

Procurement should compare terms across BNPL companies and each BNPL provider for repayment windows, late fee policies, and support SLAs.

Consolidated stats and what they mean

Below are the headline later statistics that operators can use to benchmark BNPL adoption and model risk, and to set channel targets.

Table A — US users & usage snapshot

Table B — Behavior and risk cues

Methodology notes & guardrails for teams

• Treat BNPL as a payment method and a credit product: model repayment risk alongside conversion gains.

• Expose total cost and schedule at checkout; present split purchases side‑by‑side with the full price.

• Instrument BNPL applications to flag heavy users who may open multiple BNPL purchases across providers; consider softer credit checks where appropriate.

• Monitor late payment incidence and disputes by cohort; partner with BNPL lenders that share loss data for smarter segmentation.

Conclusion: A practical lens on BNPL’s next chapter

Buy now, pay later is now part of the standard US payment stack, with BNPL adoption broadening and usage normalising across demographics. The headline growth in BNPL market participation (from 86.5 million users in 2024 toward 105 million by 2028) should prompt merchants to refine credit messaging, optimize mobile journeys, and align with BNPL providers whose settlement terms support working capital.

The opportunity is compelling: more customers, higher conversion, and larger baskets. The obligation is equally clear: mitigate late payments, publish transparent terms, and protect consumers’ cash flow. Teams that balance payment flexibility with disciplined risk controls will be best placed to win the next wave of pay-later users while safeguarding margin and brand trust.