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US Buy Now, Pay Later Loan Trends, 6th Edition

Publisher Packaged Facts
Published Aug 31, 2026
Length 98 Pages
SKU # LA21541080

Description

The Packaged Facts report US Buy Now, Pay Later Loan Trends, addresses the US market for “Pay in 4,” other no-interest, and interest-based loans offered by leading BNPL fintechs. This report relies on proprietary, trended data to identify key users, and how usage factors, credit card cross-use, risk profiles, embedded finance expansion, and product innovations influence BNPL usage. It also includes market sizing for the BNPL market, segmented by key players and their types of loans.

Table of Contents

98 Pages
Chapter 1: Executive Summary
SCOPE OF REPORT
REPORT METHODOLOGY
Consumer Survey Methodology
Secondary Research Methodology
EXECUTIVE SUMMARY
In 2026, Leading Fintech BNPL Platforms Will Process $323 Billion Globally
Spotlight: Growth Drivers
Survey Trends: Engagement Gains Signal Embedded Finance Success
Survey Trends: The Need to Balance BNPL User Risk
Survey Trends: BNPL Usage Rationales
Survey Trends: Why Holdouts Do Not Use BNPL
Major BNPL Fintech Providers
Chapter 2: BNPL Market Size and Forecast
UP, UP AND AWAY!
In 2026, Leading Fintech BNPL Platforms Will Process $323 Billion Globally
Table 2-1. Global BNPL Payment Value, 2019-2026 (billion dollars and percent)
US Market Increasingly Dominant
Table 2-2. Global BNPL Payment Value: International vs. US Value Growth, 2019-2026 (billion dollars and percent)
Affirm Generates Most US BNPL Payment Value, But Klarna is Catching Up
Table 2-3. US BNPL Payment Value: Afterpay, Affirm, Klarna, PayPal, Sezzle, and Zip, 2019-2026 (billion dollars and percent)
INTEREST-BASED LOANS MAKE GAINS
Table 2-4. US BNPL Payment Value: Pay in X, Interest-Bearing Loans, and Other, 2020-2026 (billion dollars and percent)
Klarna and PayPal Grow Pay in X Share Over Time
Table 2-5. US Pay in X BNPL Payment Value: Afterpay, Affirm, Klarna, PayPal, Sezzle, and Zip, 2020-2026 (billion dollars and percent)
Affirm Dominates Interest-Bearing BNPL, But Klarna Has a Hit on Its Hands
Table 2-6. US “Interest-Based” BNPL Payment Value: Afterpay, Affirm, Klarna, and PayPal, 2020-2026 (billion dollars and percent)
Forecast: Sunny, With One Looming Cloud
Table 2-7. US BNPL Payment Value Forecast, 2026-2028 (billion dollars and percent)
Table 2-8. US BNPL Payment Value Forecast: Pay in X, Interest-Based Loans, and Other, 2026-2028 (billion dollars and percent)
Chapter 3: Spotlight: Growth Drivers
FRAMING BNPL WITHIN EMBEDDED FINANCE SOLUTIONS
BNPL Products at Leading Providers Do Not Exist in a Vacuum
Finance and Commerce Products Turn the Flywheel
BNPL Users Exhibit Strong Interest in Financial Services Products and Beyond
Table 3-1. BNPL User Interest in Finance and Commerce Products/Services Offered by BNPL Providers by Product/Service, May 2026
DEMOGRAPHIC EXPANSION
BNPL Providers Succeed In Broadening Their Audience
But Competitors Could Learn From Block’s Success in Courting Youth
Gen Z juggernaut
Table 3-2. Cash App: Versions for Teens, Kids, and Toddlers, 2026
BNPL PAYMENT METHOD EXPANSION
Just Pay in 4? Not Anymore
Table 3-3. Number of Installments For Most Recent Buy Now, Pay Later Purchase, October 2025
PURCHASE CATEGORY EXPANSION
Table 3-4. Klarna US BNPL Payment Value by Vertical, 2024 vs. 2025 (billion dollars and percent)
Let’s Not Forget BNPL Specialists: Business is Booming
Table 3-5. US Healthcare BNPL/POS Finance Verticals, Players, and Positioning, 2026
Table 3-6. Selected US Non-Healthcare BNPL/POS Finance Verticals, Players, and Positioning, 2026
Chapter 4: Survey Trends: BNPL Usage and Usage Frequency
ENGAGEMENT GAINS BODE WELL FOR BNPL PROVIDER FUTURES
Good News and Bad News
More than 6 in 10 BNPL Users Pay via BNPL Monthly
Most Active BNPL Users Transact At Least Twice Monthly
Table 4-1. Buy Now, Pay Later: Usage in Past 12 Months, Usage in Past 30 Days, and Times Used in Past 30 Days, October 2025
USAGE GAINS SLOW WHILE USER ENGAGEMENT RISES
Table 4-2. Buy Now, Pay Later: Percent Usage in Past 30 Days, and Times Used in Past 30 Days, October 2021, 2023, and 2025
Usage Penetration Gains Translate to Phenomenal BNPL User Population Growth
Table 4-3. Buy Now, Pay Later: Adult Population Usage in Past 30 Days, and Times Used in Past 30 Days, October 2021, 2023, and 2025
DEMOGRAPHIC SWEET SPOT: FEMALE, MILLENNIAL, AND MIDDLE-INCOME
But High Credit Risk Is the Ultimate Usage Denominator
Table 4-4. Buy Now, Pay Later: Usage in Past 30 Days, by Gender, Generation, HH Income, and Credit Score, October 2025
MOST KEY USER GROUPS ARE ALSO MORE ENGAGED
Millennials Lead the Charge
Table 4-5. Buy Now, Pay Later: Times Used in Past 30 Days, by Gender, Generation, HH Income, and Credit Score, October 2025
USAGE TRENDS OVER TIME
Usage Expands Across More Demographic Cohorts
Table 4-6. Buy Now, Pay Later: Usage in Past 30 Days, by Gender, Generation, and HH Income, 2021, 2023, and 2025
Growth from 2023 to 2025 Reveals Usage and Usage Frequency Standouts
Table 4-7. Buy Now, Pay Later: Times Used in Past 30 Days, by Gender, Generation, and HH Income, 2023 vs. 2025
USAGE BY BRAND
PayPal Tops Our Survey List Again
Table 4-8. Buy Now, Pay Later Usage in the Past 12 Months by BNPL Provider, September 2025 vs. May 2026
Chapter 5: Survey Trends: The Need to Balance BNPL User Risk
CREDIT SCORES STRONGLY CORRELATE TO BNPL USAGE
Table 5-1. Adults Who Paid via BNPL in the Past 30 Days by Credit Score, October 2025
Riskiest Consumers Are Heaviest BNPL Users
Table 5-2. Adults Who Paid via BNPL in the Past 30 Days by Credit Score, October 2025
BNPL Could Help Consumers Avoid Higher-Expense Alternative Financial Services
Table 5-3. Types of Alternative Financial Services Used in Past 12 Months: All Adults, BNPL Users, and Credit Card Users, October 2025
But BNPL Underwriters Should Tread Carefully
Table 5-4. Types of Alternative Financial Services Used in Past 12 Months by BNPL Usage Frequency, October 2025
Table 5-5. Types of Alternative Financial Services Used in Past 12 Months by BNPL User Credit Score, October 2025
Chapter 6: Survey Trends: BNPL Usage Rationales
TOP USAGE RATIONALES
Budgeting, Debt Management, and Cash Flow Rationales Drive Usage
Secondary Rationales Address Convenience and Purchase Incentive Needs
The Specter of Loan Stacking Continues to Loom
Table 6-1. Reasons for Using BNPL, September 2025 and May 2026
Respondent Credit Scores Heavily Influence Usage Rationales
IMPORTANCE OF BNPL FEES, TERMS, AND BENEFITS
Who Wouldn’t Love Ease of Use with No Fees?
Table 6-2. Most Important in Choosing a BNPL Provider: Fees, Terms, and Benefits, September 2025
FINANCIAL PROTECTION AND CASH FLOW CONSIDERATIONS PREDOMINATE
Table 6-3. BNPL Financial and Rewards Attitude Statements, September 2025 vs. May 2026
Engage Gen Z and Millennials with Rewards
Table 6-4. BNPL Financial and Rewards Attitude Statements by Generation, May 2026
Chapter 7: Survey Trends: Why Holdouts Do Not Use BNPL
TRANSACTORS ARE A KEY HURDLE
They need to be convinced otherwise
Table 7-1. Why Non-Users Say They Do Not Use BNPL, May 2026
Among Generations, Baby Boomers Put Up the Most Fuss
Table 7-2. Why Non-Users Say They Do Not Use BNPL by Generation, May 2026
Lower HH Income Users Prefer Non-Debt Options and Fret Over Credit Approval
Table 7-3. Why Non-Users Say They Do Not Use BNPL by HH Income, May 2026
Credit Scores Dictate Pay in Full Mentality
Table 7-4. Why Non-Users Say They Do Not Use BNPL by Credit Score, May 2026
Chapter 8: BNPL Fintech Providers
AFFIRM
The Largest BNPL Provider in the US
Focused on the Median Consumer with an Eye on High-Income Prospects
Strong Payment Value Growth
Table 8-1. Affirm BNPL Payment Value: International vs. US Payment Value, 2019-2026 (billion dollars and percent)
Diversified BNPL Product Offerings—Though APR-Based Loans Rule
Table 8-2. Affirm US BNPL Payment Value by Loan Type, 2020-2026 (billion dollars and percent)
Strong, Sustained Customer Count, Engagement, and Payment Value Growth
Table 8-3. Affirm Payment Value, Customers, Transactions, and Per-Customer Metrics, 2020-2025 (billion dollars, million persons, and million transactions)
Affirm-Originated Transaction Growth Keep Pace with POS Transactions
Table 8-4. Affirm Transactions by POS Mix, 2021-2025 (million transactions and percent)
Interest Income Rules at Profitable Fintech
Table 8-5. Affirm Revenue by Type, 2020-2025 (million dollars and percent)
Affirm Card Drives Direct-to-Consumer Segment Growth
Table 8-6. Affirm Direct-to-Consumer Payment Value: Affirm Card vs. Marketplace, 2022-2025 (million dollars and percent)
Dissecting Affirm Card Usage Trends
Table 8-7. Affirm Card Payment Value, Cards, Transactions, Transactions and Payment Value per Card, and Payment Value per Transaction, 2024 vs. 2025
Table 8-8. Affirm Card Payment Value, Cards, Transactions, Transactions and Payment Value per Card, and Payment Value per Transaction, March 2024-March 2026
Key Retailer Partnerships are a Strength and Weakness
Initiatives Leverage AI, Reach Banking Customers, and Expand Purchase Verticals
Table 8-9. Affirm Selected US Product/Service Launches, 2025-2026
AFTERPAY
Afterpay BNPL Payment Value Is Growing Modestly Compared to Competitors
Table 8-10. Afterpay BNPL Payment Value: Total, US, and International, 2019-2026 (billion dollars and percent)
Modest Pay in 4 Payment Value Growth Suggests Product Cannibalization
Table 8-11. Afterpay US BNPL Payment Value: Pay in 4 vs. Pay Monthly, 2019-2026 (billion dollars and percent)
BNPL Integration Within Cash App Will Lift All Boats
Finally, Afterpay Integration with Cash App
Afterpay Can Leverage Cash App’s $199 Billion Commerce Payment Value Engine
Table 8-12. Block Payment Value and Active Users for Cash App Card, Afterpay, Cash App for Business, and Cash App Pay, 2025 (billion dollars, million users, and percent)
Afterpay Can Complement Cash App Banking Products and Services
Move Over, BNPL—Make Way for Cash App Borrow
Table 8-13. Afterpay US BNPL Payment Value and Cash App Borrow Origination Value, 2019-2026 (billion dollars and percent)
Initiatives Emphasize Financial Management Tools and Converting Cash App Users
Table 8-14. Cash App/Afterpay Selected US Product/Service Launches, 2025-2026
KLARNA
Klarna Payment Value Rockets Forward in the US
Table 8-15. Klarna BNPL Payment Value: International vs. US Payment Value, 2019-2026 (billion dollars and percent)
Longer-Term Interest-Based Product Is a Hit
Table 8-16. Klarna US BNPL Payment Value by Loan Type, 2019-2026 (billion dollars and percent)
Sales Are Less Reliant on Apparel & Accessories
Table 8-17. Klarna US BNPL Payment Value by Vertical, 2024 vs. 2025 (billion dollars and percent)
Initiatives Boost Distribution, Open New Purchase Verticals, and Cement Bank Ambitions
Table 8-18. Klarna Selected US Product/Service Launches, 2025-2026
PAYPAL (BNPL)
OG Fintech Came Late to BNPL; But It’s Ramped Up Quickly
International Muscle, But Recent Growth Tilts Toward the US
Table 8-19. PayPal BNPL Payment Value: International vs. US Payment Value, 2020-2026 (billion dollars and percent)
Interest-Based Pay Monthly Product Is Gaining Share
Table 8-20. PayPal US BNPL Payment Value: Pay in 4 vs. Pay Monthly, 2020-2026 (billion dollars and percent)
ZIP
The Comeback Kid Comes Out Swinging
Table 8-21. Zip BNPL Payment Value: US vs. International, 2020-2026 (billion dollars and percent)
Pay in X Expansion Helps Zip Surpass $10 billion in US BNPL Payment Value
Table 8-22. Zip US BNPL Payment Value by Type, 2020-2026 (billion dollars and percent)
New Product Initiatives, In-Store Momentum, and Non-Discretionary Differentiation
Table 8-23. Zip US BNPL Payment Value Share by Vertical with Year-over-Year Change, 2025
Industry-Leading Usage and Spend Metrics
Table 8-24. Zip US Quarterly BNPL Payment Value, Transactions, Customers, Merchants, and Revenue, March 2024-March 2026
Table 8-25. Zip US Quarterly Per Customer BNPL Payment Value, Transactions, and Revenue, March 2024-March 2026
Appendix
METHODOLOGY
TERMS AND DEFINITIONS

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