Decoding BNPL Users: Necessity, Convenience and Risk Signals

Buy now, pay later (BNPL) has become an increasingly integrated part of the U.S. consumer payment landscape, with a significant share of consumers reporting active accounts. Data indicates that usage spans various age and income groups. Consumers use the payment method for a wide range of purchases, from everyday essentials like groceries and clothing to larger items such as home furnishings and electronics. For many, BNPL represents a go-to payment option, with consumers indicating that they might significantly alter their purchase behavior if it weren’t available.

Key Data Points

BNPL Account Penetration by Age and Income

The share of U.S. consumers with active BNPL accounts varies across demographic segments. People age 25–34 are the most active users, at nearly 1 in 4. Those age 65 and older are the least likely to take advantage of the payment plans, at just more than 5% of all consumers in that age range.

Whether consumers use BNPL out of necessity because they are cash-strapped or for convenience in managing their pocketbooks depends in large part on their income.

Leading BNPL Providers

Several providers hold notable estimated market share in the U.S. BNPL space. Klarna holds the largest share at 26.2%, followed by Afterpay at 21.9% and Affirm at 19.3%.

Top Product Categories Purchased Using Pay Later

Consumers utilize pay-later options across diverse product categories. Clothing and accessories are the most frequently purchased category, cited by 40.0% of consumers using pay-later options as of February 2025, followed by groceries at 32.2% and appliances at 29.5%.

Overlap of Pay Later Product Usage

Many consumers don’t exclusively use one type of pay-later product. More than 80% of the total adult population reports having credit cards. Among those who use pay-later products, 38.7% use both BNPL and installment loans. Just 16.0% report using nothing (neither BNPL nor installment loans).

Consumer Action if BNPL Were Unavailable

If unable to complete a purchase via BNPL, a significant portion of consumers would alter their spending behavior. The most common alternative actions include deciding not to make the payment or purchase (43.0%) or to purchase or pay for a cheaper product or service (42.4%). 35.1% would complete the payment but delay other due payments.

Usage by Financial Necessity

Consumers can be categorized by their degree of financial necessity. Those identified as “Convenience” users are more likely to use credit cards, installment plans and BNPL (39.0%) compared to “Necessity” users (38.4%) or the population total (38.7%). “Convenience” users show a higher share using only credit cards (41.7%) compared to “Necessity” users (16.2%).

BNPL Users with Past Due Payments

A segment of BNPL users reports having past-due payments. The share of BNPL users with past-due payments fluctuated between April 2024 and January 2025, ranging from a low of 23.2% in October 2024 to a high of 27.5% in January 2025.

Conclusion

The data indicates that BNPL is a widely adopted payment method, used by diverse demographics for a broad array of goods and services. Its role extends beyond convenience for many, influencing purchase decisions and financial management for others. The landscape includes dominant providers and reveals complex usage patterns involving other credit products, alongside observed instances of past-due payments among users.