On this page
The popularity of Buy Now, Pay Later (BNPL) services has surged over the past few years, transforming how Americans manage their online and in-store purchases. With the flexibility to split payments into interest-free installments, this payment method appeals to a broad demographic, especially younger consumers seeking alternatives to traditional credit. As the eCommerce sector continues to grow, so too does the demand for BNPL solutions.
This article explores the growth of BNPL adoption in the United States, from recent trends to projections for the coming years, and its implications for consumers and businesses alike.
How Many Americans Use BNPL?
The adoption of BNPL services in the United States has grown steadily since 2021, with usage more than doubling over the past five years. According to the latest data, 91.5 million consumers are expected to use BNPL this year, marking a 5.8% increase from 2024.
Number of BNPL Users (Millions):
- 2023: 80.9 (+17.0%)
- 2024: 86.5 (+6.9%)
- 2025: 91.5 (+5.8%)
- 2026: 96.3 (+5.3%)
- 2027: 100.8 (+4.7%)
While the rapid double-digit growth seen between 2021 and 2023 has tapered off, the steady annual increases indicate BNPL’s sustained appeal. By 2027, user adoption is forecast to exceed 100 million, crossing a significant milestone for this payment method.
Adoption Trends and Milestones
Slower but Steady Growth
From 2021 to 2023, the BNPL market experienced explosive growth, fueled by the pandemic-induced surge in online shopping and tightened household budgets. During this period, the number of users grew by an average of 51.5% annually. As the market matures, growth rates have stabilized.
In 2024, user adoption grew by 6.9%, reaching 86.5 million consumers. Between 2025 and 2027, growth is expected to remain between 4–6% annually, reflecting a natural plateau in early adopters and market saturation among certain demographics.
100 Million Milestone
By 2027, BNPL services are projected to surpass 100 million US users, signaling their integration into mainstream payment options.
Expanding Use Cases
While BNPL was initially popular for retail purchases, it has since expanded into diverse sectors, including:
- Travel: Consumers use BNPL for booking flights, hotels, and vacation packages.
- Healthcare: Medical services and elective procedures are increasingly financed through installment plans.
- Education: Online courses and professional certifications now often offer flexible payment options.
The Appeal of BNPL
Financial Flexibility
BNPL allows consumers to spread payments over several installments, making larger purchases more manageable without incurring interest. This has been particularly attractive to younger shoppers, who often prefer avoiding traditional credit cards.
Transparency
BNPL platforms typically offer clear payment schedules, with no hidden fees or surprises, enhancing consumer trust and adoption.
Accessibility
Unlike credit cards, which often require a lengthy application and credit check, BNPL services are quick and easy to use, with minimal barriers to entry.
Increased Spending Power
By reducing upfront costs, BNPL encourages consumers to make larger purchases, boosting average order values (AOV) for retailers.
Market Size and Value
The rise in BNPL adoption is mirrored by its growing transaction value. In 2023, BNPL payments accounted for $71.9 billion in transaction volume, a figure that is expected to nearly double by 2027:
Transaction Value ($ Billion):
- 2023: 71.9
- 2024: 86.4
- 2025: 101.2
- 2026: 113.6
- 2027: 124.8
This growth underscores the increasing reliance on BNPL as a payment method, not just among consumers but also across various industries.
Top BNPL Providers
Several companies dominate the BNPL landscape in the United States, each contributing to the market’s expansion.
Affirm: Known for its transparent pricing and flexible installment plans, Affirm partners with major retailers like Amazon and Peloton to offer BNPL options at checkout.
Klarna: A global leader, Klarna has a significant presence in the US, offering a user-friendly app that includes payment options, exclusive deals, and budgeting tools.
Afterpay: Catering to fashion-forward shoppers, Afterpay, now part of Block, Inc., partners with brands like Urban Outfitters and Sephora, appealing particularly to younger demographics.
PayPal’s Pay in 4: Leveraging PayPal’s widespread reach, this BNPL service is trusted by millions of consumers and integrates seamlessly into existing merchant payment systems.
Challenges Facing BNPL Growth
Regulatory Oversight
As BNPL becomes more widespread, regulatory scrutiny has increased to ensure that consumers are protected from excessive debt and that providers operate transparently.
Rising Competition
Traditional credit card companies are introducing installment payment options to compete with BNPL platforms, which could slow adoption rates.
Consumer Debt Concerns
Critics argue that BNPL encourages impulsive spending, potentially leading to overextension for some users, particularly those without stable financial means.
Opportunities for Businesses
eCommerce businesses can benefit significantly by integrating BNPL into their payment options.
Higher Conversion Rates: Offering BNPL reduces sticker shock, making it more likely that shoppers will complete their purchases.
Larger Order Values: BNPL users often spend more per transaction, as the option to pay in installments makes higher-priced items more accessible.
Broader Customer Base: BNPL appeals to younger shoppers and those without access to traditional credit, expanding a retailer’s potential audience.
Enhanced Customer Loyalty: Providing flexible payment options improves the overall shopping experience, encouraging repeat business.
Future Outlook for BNPL
The BNPL market is poised for continued growth as adoption expands across industries and demographics. Key developments to watch include:
Integration with AI and Data Analytics
BNPL platforms are expected to use artificial intelligence to personalize payment plans, analyze spending habits, and recommend products based on user behavior.
Expansion into New Sectors
Beyond retail, BNPL is making inroads into sectors like healthcare, education, and real estate, offering consumers greater flexibility in managing large expenses.
Evolution of Super Apps
BNPL providers are increasingly bundling services like budgeting tools, rewards programs, and financial education within their platforms, enhancing user value.
Buy Now, Pay Later has transformed consumer payment preferences, offering flexibility, transparency, and accessibility. While growth rates are slowing compared to previous years, the steady rise in adoption indicates that BNPL is here to stay. With more than 91 million US users expected this year and transaction volumes projected to reach $124.8 billion by 2027, businesses that embrace BNPL are well-positioned to thrive in the competitive eCommerce landscape.
For consumers, BNPL represents an attractive alternative to traditional credit, enabling them to make purchases more affordably and responsibly. For businesses, integrating BNPL into their payment offerings is no longer optional—it’s essential for staying relevant in a rapidly evolving market.
From Zero to Your First 100 Sales
Discover the unconventional shortcut to build a 7-Figure eCommerce empire
