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

TL;DR Summary

Buy Now Pay Later reached 91.5 million US users in 2026, establishing BNPL as a mainstream payment method across American retail demographics.

• BNPL drove $20 billion in US holiday 2025 spending, up 9.8% YoY, outpacing overall online holiday sales growth of 6.8%.

• Cyber Monday 2025 generated $1.03 billion in single-day BNPL transactions, the first day ever to cross that threshold.

• 63% of US BNPL users carry multiple concurrent loans, leading to obscured affordability signals and elevated late-payment rates of 34–41%.

• FICO now incorporates BNPL activity into credit scoring because Affirm began bureau reporting in 2025, ending credit invisibility for the sector.

• Mobile devices accounted for 82.2% of holiday 2025 BNPL purchases, reshaping checkout UX and fraud modeling requirements for merchants.

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 2026, the number of buy now pay later US users crossed 91 million, reflecting shifting consumer preferences for smaller payments, transparent terms, and flexible cash flow. BNPL user data continues to climb, especially during peak shopping periods, where mobile-driven BNPL now sets single-day records.

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 2026 data on BNPL users, adoption drivers, and usage patterns, then translates the trends into practical implications for product, finance, and growth teams.

BNPL services: Highlights at a glance

• 91.5 million US consumers used buy now pay later in 2026, up from 86.5 million in 2024. Broader adoption surveys put the number of Americans who have ever used BNPL at 52%, which suggests the addressable base is now roughly the entire adult population.

• Holiday demand remains the single strongest catalyst. BNPL drove $20 billion during the 2025 season, up 9.8% year over year, with a new record of $1.03 billion on Cyber Monday alone (up 4.2% YoY and the first single day ever to cross $1B in BNPL).

• Multi-lender behavior is widespread: 63% of users report multiple BNPL loans active concurrently, and 33% use more than one lender.

• Convenience drives stickiness: 48% of users say they will reuse the same provider; 46% cite ease of use as a factor in choosing BNPL.

• Mobile matters more each year: 82.2% of holiday 2025 BNPL purchases happened on smartphones, up from 79% in 2024. That reshapes checkout and risk models.

• Regulation caught up in 2025-2026. FICO now incorporates BNPL loans into credit scoring, Affirm began reporting BNPL loans to credit bureaus, and Klarna went public on the NYSE in September 2025 (ticker KLAR). The product is no longer credit-invisible or venture-only.

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

The BNPL user base has expanded alongside online shopping and omnichannel retail. With 91.5 million BNPL users in 2026 and momentum pointing to roughly 100 to 105 million by 2028, adoption is broadening from early adopters to the mass market.

The market itself is projected to grow from US$107.38bn in 2025 to US$258.40bn by 2031 at a 15.7% CAGR, so per-user spend is climbing faster than user counts. Independent central-bank modelling puts 2025 US BNPL net transaction value at roughly US$70bn, or about 1.1% of total US credit card volume. This is consistent with a global BNPL market that reached approximately US$560 billion in GMV in 2025 with 380 million users worldwide.

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. The 2025-2026 shift to credit-bureau reporting means cohort risk models built on unreported BNPL data are already stale.

Adoption by age, income, and credit health

BNPL adoption skews younger but is no longer youth-only. Gen Z leads adoption at 59%, Millennials at 58%, Gen X sits around 28%, and Baby Boomers around 13%. Millennials still account for the largest share of the total user base by volume, since their generation is larger and further into peak spending years. Gen Z shows the highest adoption rate but also reports the most trouble managing multiple installment schedules.

Income and credit-health patterns explain who uses BNPL and why. A survey found that 26.6% of users by choice have household incomes between $50k and $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, roughly triple the rate of those above 720. This implies that credit checks and responsible-lending messaging are essential, particularly now that FICO scoring includes BNPL activity.

Demographically, adoption varies across racial cohorts, with Black Americans showing the highest usage among the groups tracked. Financial stress is a growing overlay. Nearly 73% of Gen Zers reported living paycheck to paycheck at the start of 2026, and 56% of Gen Z struggle to track store card installment payments. For product teams, this means tailoring installment plans and repayment reminders to segments, while finance teams recalibrate loss allowances as credit health varies.

Usage patterns: Frequency, providers, and behavioral flags

BNPL purchases are habitual for many. In late 2024, half of Americans had been offered a BNPL option in the prior 30 days, and roughly 10% made at least one BNPL purchase during that window. Those numbers have only grown since, as more mainstream merchants integrated BNPL at checkout across 2025.

Multi-lender behavior is the norm. Approximately 63% of users 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, because multiple simultaneous loans can obscure affordability signals. Central-bank modelling of CFPB loan data puts average BNPL debt outstanding at any given time at approximately US$3.02bn, a small share of total consumer debt but growing quickly. Retailers should surface total cost, due dates, and repayment status in-app to reduce missed payments and late fees.

Spend, seasonality, and channels

BNPL peaks during gifting cycles and big promos, and 2025 raised the ceiling. Consumers spent $20 billion via BNPL during the 2025 holiday season, up 9.8% year over year. Cyber Monday alone hit $1.03 billion, up 4.2% year over year and the first single day to cross $1B in BNPL. BNPL growth of 9.8% outpaced overall online holiday sales growth of 6.8%, so BNPL kept taking incremental share of holiday wallet.

Mobile now dominates pay-later services. 82.2% of holiday 2025 BNPL transactions happened on phones, which should influence mobile UX, fraud posture, and messaging. Category mix has broadened too: apparel and electronics remain the leaders, but 31% of consumers now use BNPL for groceries and 29% for delivery food. Travel, hospitality, utilities, and subscription renewals are the newest growth categories, extending 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 between 34% and 41% of BNPL users report late payments per CFPB data, even as default rates stay low at approximately 1.8% to 2%. The gap between low defaults and high late-payment rates signals that consumers are stretching to meet installment schedules, patterns that can resemble reliance on high-cost options like payday loans.

The 2025-2026 regulatory shift changes the stakes. FICO now incorporates BNPL loans into its credit scoring model, and Affirm began reporting BNPL loans to credit bureaus in 2025. Klarna and Afterpay have moved more cautiously, but with FICO scoring live, the pressure to report is rising across all providers.

That means transparency about interest rates (when applicable), consumer fees, and late fees (plus reminders and autopay) now protects consumer credit records too, not just cash flow. Providers and retailers should emphasize 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 market, ranging from BNPL lenders embedded in merchant checkouts to wallets such as PayPal Pay in 4 and Apple Pay Later. The competitive picture depends on which lens is applied:

• User preference: A 2025 survey found 56% of BNPL users preferred PayPal Pay in 4, ahead of Klarna, Affirm, and Afterpay (each cited by 38%). PayPal's advantage is distribution, since it is already embedded in most e-commerce checkouts.
• Global GMV: Klarna leads with US$3.5bn revenue and US$127.9bn GMV in 2025 across 118 million active consumers and roughly 966,000 merchants. Klarna went public on the NYSE in September 2025 (ticker KLAR). US-specific: 42.8 million American users, averaging US$513.47 per user, with US payment volume projected at US$30.21bn in 2026.
• US growth on scale: Affirm posted FY2025 GMV of US$36.7bn and 23 million active accounts, up more than 40% year over year. Its expanded Amazon partnership widens its distribution meaningfully, and Affirm Card users grew from 1.7 million at end of 2024 to 4.4 million by March 2026.
• Mass-market share: Afterpay, part of Block, generated US$1.04bn revenue in 2024, up 28% YoY, with 2026 US payment volume projected at US$11.26bn. Afterpay is the only major provider that does not automatically run a soft credit check at checkout.

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 for repayment windows, late-fee policies, and support SLAs. With FICO scoring live, providers who report to bureaus consistently will attract more credit-conscious shoppers, so reporting practice is becoming a differentiator rather than a nice-to-have.

Consolidated stats and what they mean

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

Table A: US users and usage snapshot (2026 refresh)

Table B: Behavior, risk, and regulatory cues

Conclusion: A practical lens on BNPL's next chapter

Buy now, pay later is now part of the standard US payment stack. BNPL adoption has broadened, usage has normalized across demographics, and the regulatory infrastructure has finally caught up.

The headline growth in BNPL market participation (from 86.5 million users in 2024 to 91.5 million in 2026 and toward 100 million by 2028) should prompt merchants to refine credit messaging, optimize mobile journeys, and align with BNPL providers whose settlement terms support working capital and whose bureau-reporting practices support credit-conscious shoppers.

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 now that credit records reflect BNPL activity. 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.

Frequently asked questions

How many people in the US use BNPL in 2026?

Roughly 91.5 million Americans used buy now pay later in 2026, up from 86.5 million in 2024. Broader adoption surveys put the share of Americans who have ever used BNPL at 52%, meaning the addressable base now covers roughly the entire adult population. Growth momentum points toward 100 to 105 million active users by 2028.

Which age group uses BNPL the most in the US?

Gen Z leads BNPL adoption at 59%, closely followed by Millennials at 58%, then Gen X at around 28% and Baby Boomers at around 13%. Millennials still hold the largest share of the total user base by volume, since their generation is larger and further into peak spending years. Gen Z has the highest adoption rate but also reports the most difficulty managing multiple installment schedules.

How much did Americans spend using BNPL during the 2025 holiday season?

Americans spent US$20 billion through BNPL during the 2025 holiday season, up 9.8% year over year. Cyber Monday alone hit US$1.03 billion, up 4.2% year over year, and marked the first single day ever to cross US$1 billion in BNPL spend. BNPL growth also outpaced overall online holiday sales growth of 6.8%, meaning BNPL kept taking incremental share of holiday wallet.

Which BNPL provider do Americans use most?

A 2025 survey found 56% of BNPL users preferred PayPal Pay in 4, ahead of Klarna, Affirm, and Afterpay (each cited by 38%). PayPal's edge is distribution, since it is already embedded in most e-commerce checkouts. By global GMV, Klarna leads with US$127.9 billion across 118 million active consumers. Affirm posted FY2025 GMV of US$36.7 billion across 23 million active accounts.

Does BNPL affect your credit score in 2026?

Yes. FICO now incorporates BNPL loans into its credit scoring model, meaning missed or late payments on BNPL installments can affect credit scores the same way other credit products do. Affirm began reporting BNPL loans to credit bureaus in 2025, and pressure is rising across providers to follow. Klarna and Afterpay have moved more cautiously, but bureau reporting is becoming a differentiator rather than a nice-to-have.

Why do people use multiple BNPL services at once?

About 63% of US BNPL users have multiple BNPL loans active at the same time, and 33% use more than one provider. The pattern reflects both convenience and cash flow stretching, since different providers offer different terms, checkout options, and repayment schedules. This creates loyalty for individual providers (48% intend to reuse the same platform) but also obscures affordability signals for lenders and merchants.

How risky is BNPL for consumers?

Default rates remain low at 1.8% to 2%, but 34% to 41% of BNPL users report late payments per CFPB data, and about 24% report overspending. The gap between low defaults and high late-payment rates signals consumers are stretching to meet installment schedules. With FICO now scoring BNPL activity, those late payments now hit credit records too, not just monthly cash flow.

What percentage of BNPL purchases happen on mobile?

Mobile accounted for 82.2% of BNPL purchases during the 2025 holiday season, up from 79% in 2024. Mobile share keeps climbing each year, which is reshaping how checkout, fraud posture, and repayment reminders need to be designed. Merchants who under-invest in mobile BNPL flows lose conversion at the exact surface where most BNPL demand now lands.

What can you buy with BNPL in 2026?

Apparel and electronics remain the leading BNPL categories, but 31% of consumers now use BNPL for groceries and 29% for delivery food. Travel, hospitality, utilities, and subscription renewals are the newest growth categories. The pattern shows BNPL has moved past one-off splurges into routine payment method choices, extending the product into lower-AOV baskets that affect provider and merchant unit economics.

How big is the US BNPL market in 2025 and beyond?

The US BNPL market reached US$107.38 billion in 2025 and is projected to grow to US$258.40 billion by 2031, a 15.7% CAGR. That means per-user spend is climbing faster than user counts. Central-bank modelling puts 2025 US BNPL net transaction value at roughly US$70 billion, or about 1.1% of total US credit card volume, so BNPL is still a small share but taking growth quickly.

Methodology

The market figures in this report are sourced primarily from established third-party research firms, with first-party sources such as company filings, government data, and regulatory disclosures used to validate and contextualize key figures where available. We prioritize sources that clearly define their methodology, including market scope, geography, time period, and forecast assumptions.

Where credible sources report different market estimates, we do not average or selectively use figures. Instead, we assess differences in market definitions, coverage, and reporting periods and present the most relevant estimate with appropriate context. We also prioritize recent data and avoid using figures when the original source or methodology cannot be reasonably verified.