US Buy Now, Pay Later Loan Trends, 5th Edition Report
This report presents a deeply detailed analysis of the opportunities and challenges confronting extant and new participants in the BNPL sector. It examines macro and micro drivers of transaction volume, repayment rates and costly government regulations that may drive pure play fintechs (financial technology companies) out of an industry already characterized by its razor thin margins.
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Report Overview
Credit Scores Strongly Correlate to BNPL Usage
For example, users with pristine credit scores (at least 800) are more than 7 times less likely than the average BNPL user to pay via BNPL. This contrasts with those having scores below 600 (deep sub-prime territory), who are about 2.5 times more likely to pay via BNPL.
Key Themes Covered in this Report:
- The BNPL audience has a Gen Z and Millennial sweet spot. Consumers falling within these groups are roughly twice as likely as the average respondent to use BNPL, regardless of product type.
- It is very likely that BNPL has pulled payment value away from credit cards and alternative financial service – while BNPL users generally have good enough credit to obtain credit cards, more hard-pressed consumers can benefit from BNPL budgeting and cash flow benefits, while avoiding alternative financial services that carry high usage costs
- Budgeting, managing debt, and solving cash flow challenges are top BNPL usage rationales.
- US and international BNPL fintech provider payment value market sizing and forecasting overall and by provider
- Key growth drivers, including category expansion, fintech ecosystems, and customer rewards
- BNPL use and usage frequency analysis, by BNPL product type and across demographics, including generational “deep cuts” such as generation by gender, income, race/ethnicity, and credit score
- BNPL user risk assessment, including analysis of BNPL usage by credit score, banked status, usage frequency by consumer risk
- BNPL user credit card usage, primary rewards card usage, credit card debt, with credit score analysis
- Mobile payment adoption among BNPL users, including online and in-store usage, mobile payment brand penetration, and share of payments made via money stored in mobile apps
- BNPL usage factors running the gamut, including budgeting, debt, and cash flow themes and ease of use considerations to financial insecurity regulatory protection issues, cut by demographic
- BNPL user interest in broader provider offerings, from high-yield savings accounts to cell phone plans
- Why holdouts say they do not use BNPL
- Leading BNPL fintech provider drilldowns, including ecosystem, product, and revenue trends.
US Buy Now, Pay Later Loan Trends Report Details
| Current Total Market Size | $106.7 billion |
| Forecast Total Market Growth Rate | 20.5% CAGR from 2025-2027 |
| Historical Period | 2019-2025 |
| Forecast Period | 2025-2027 |
| Units Covered | US dollars |
| Regions | United States |
| Additional Elements | Market Leader Performance and Forecasts, Consumer Surveys |
Leading Companies Driving Trends in the US Buy Now, Pay Later Industry
| Affirm | Sezzle |
| Afterpay | SetPay |
| Bread | Shop Pay |
| Klarna | Zip |
| PayPal |
BNPL Usage Factors
Budgeting, debt, and cash flow themes are top usage rationales. But the specter of loan stacking looms: Roughly 1 in 10 BNPL users are saying they have opened a new BNPL account because they reached their limit with other BNPL providers. And 44% of BNPL users say they have BNPL loans with more than one provider.
BNPL users with low credit scores are more apt than average to cite debt and cash flow challenges as reasons for using BNPL. Those with higher credit scores were more apt to cite ease of use, earning rewards/discounts, and getting promotional offers.
Buy Now, Pay Later Loan Trends Report Scope
This report covers trends shaping the fintech buy now, pay later (BNPL) market. More specifically, this report includes:
- US and international BNPL fintech provider payment value market sizing and forecasting overall and by provider
- Key growth drivers, including category expansion, fintech ecosystems, and customer rewards
- BNPL use and usage frequency analysis, by BNPL product type and across demographics, including generational “deep cuts” such as generation by gender, income, race/ethnicity, and credit score
- BNPL user risk assessment, including analysis of BNPL usage by credit score, banked status, usage frequency by consumer risk
- BNPL user credit card usage, primary rewards card usage, credit card debt, with credit score analysis
- Mobile payment adoption among BNPL users, including online and in-store usage, mobile payment brand penetration, and share of payments made via money stored in mobile apps
- BNPL usage factors running the gamut, including budgeting, debt, and cash flow themes and ease of use considerations to financial insecurity regulatory protection issues, cut by demographic
- BNPL user interest in broader provider offerings, from high-yield savings accounts to cell phone plans
- Why holdouts say they do not use BNPL
- Leading BNPL fintech provider drilldowns, including ecosystem, product, and revenue trends.
This report can help industry participants target prospects and users according to a wealth of relevant attitudes and behaviors, position products and services to the right audience, and obtain proprietary competitive insight.
This report features proprietary market sizing for US and international BNPL payment value and payment value estimates for other products offered by leading BNPL players. It also features survey analysis that hits key industry issues, including BNPL user risk assessment by credit score and banked status; online and in-store mobile adoption; budgeting, debt, and cash flow usage factors, and interest in non-BNPL fintech commerce and financial services.
This report includes analysis of “Pay in 4” and interest-based installment loans offered by leading BNPL fintechs.
