2025 Buy Now, Pay Later Trends Study
KEY POINTS
- Rising regret in BNPL: Nearly 40% of Americans regret using BNPL after understanding total costs.
- Late payments surge: Twenty-four percent of BNPL users have made a late payment, up from 18% in 2023.
- Generational usage trends: Millennials and Gen Z are most likely to use and trust BNPL over credit cards.
Buy now, pay later usage continues to trend upwards, but not without risks and regret from consumers.
Nearly 40% of Americans surveyed by Motley Fool Money say they've regretted using buy now, pay later after realizing their total cost burden and 58% say they've used buy now, pay later to finance a purchase they otherwise couldn't afford. And the percentage of buy now, pay later users that have made a late payment jumped significantly.
That comes as buy now, pay later provider Klarna reported a jump in credit losses in early 2025 and more stores, like Costco, announce plans to offer buy now, pay later at checkout.
Read on for the latest buy now, pay later statistics.
15% of Americans used BNPL in 2024
Fifteen percent of Americans used BNPL in 2024, up from 14% in 2023 and 12% in 2022, according to the Federal Reserve.
Editor's note: The usage of buy now, pay later services among American adults shows considerable variation among survey results, indicating anywhere from 12% to more than 60% have used buy now, pay later.
Among respondents to Motley Fool Money's 2025 Buy Now, Pay Later Trends Study, 31% had used BNPL at least once since BNPL became available. Seventeen percent of respondents reported using BNPL less than once a year.
Younger respondents to Motley Fool Money's survey were more likely to report ever having used BNPL:
- 40% of Gen Z respondents used BNPL at least once since BNPL became available.
- 48% of millennial respondents used BNPL at least once since BNPL became available.
- 28% of Gen X respondents used BNPL at least once since BNPL became available.
- 13% of baby boomer respondents used BNPL at least once since BNPL became available.
24% of Americans who have used buy now, pay later have made a late payment
Twenty-four percent of Americans who have used buy now, pay later have made a late payment, according to the Federal Reserve. That's up from 18% in 2023.
| Age | Used BNPL | Paid Late |
|---|---|---|
| 18–29 | 19% | 32% |
| 30–44 | 19% | 25% |
| 45–59 | 16% | 21% |
| 60+ | 8% | 12% |
Lower-income Americans, younger Americans, and non-white Americans are more likely to have made a late payment, per the Federal Reserve.
| Race/Ethnicity | Used BNPL | Paid Late |
|---|---|---|
| White | 11% | 16% |
| Black | 25% | 29% |
| Hispanic | 21% | 32% |
| Asian | 12% | 27% |
That aligns with Motley Fool Money's 2025 Buy Now, Pay Later Trends Survey, which found that 42% of BNPL users have made a late payment, up from 39% in 2024. The survey found that younger respondents were more likely to have fallen behind at least once.
| Family Income | Used BNPL | Paid Late |
|---|---|---|
| Less than $25,000 | 16% | 40% |
| $25,000–$49,999 | 19% | 26% |
| $50,000–$99,999 | 16% | 21% |
| $100,000 or more | 11% | 13% |
Editor's note: The percentage of Americans who have missed or made a late buy now, pay later payment shows considerable variation among surveys, with results ranging from 7% to 56% of BNPL users.
31% of buy now, pay later users have lost track of payments
Nearly one in three buy now, pay later users have lost track of payments they owe, according to Motley Fool Money's 2025 Buy Now, Pay Later Trends Survey.
Millennials and Gen Z are four times more likely than baby boomers to say they've lost track of BNPL payments.
| Generation | Have Lost Track of BNPL Payments |
|---|---|
| Gen Z | 37% |
| Millennials | 38% |
| Gen X | 25% |
| Baby boomers | 9% |
| Total | 31% |
Fewer than half of those who use BNPL budget for payments in advance. Most improvise or lose track of their payments all together, according Motley Fool Money's 2025 Buy Now, Pay Later Trends Survey.
Gen Z is least likely to plan ahead, with roughly 40% of that generation saying they do so when using BNPL. Baby boomers are the most disciplined and only generation in which over 50% map out their BNPL expenses.
| Generation | I budget for all BNPL payments ahead of time | I track BNPL payments loosely and adjust as needed | I often lose track of upcoming BNPL payments |
|---|---|---|---|
| Gen Z | 38% | 54% | 8% |
| Millennials | 47% | 43% | 10% |
| Gen X | 49% | 44% | 7% |
| Baby boomers | 62% | 29% | 9% |
| Total | 47% | 44% | 8% |
39% of buy now, pay later users have regretted using it after realizing costs
Nearly 40% of BNPL users surveyed by Motley Fool Money regret using BNPL once the full cost hits home.
Gen Z and millennials lead the way with BNPL regret. Just over 50% of each of those generations say they've used BNPL and later regretted it compared to just 31% of baby boomers.
| Generation | Regret Using BNPL After Realizing Full Cost |
|---|---|
| Gen Z | 55% |
| Millennials | 52% |
| Gen X | 47% |
| Baby boomers | 31% |
| Total | 49% |
58% of BNPL users rely on it to buy items they otherwise couldn't afford
Fifty-eight percent of BNPL users turn to the service to purchase something they couldn't afford with traditional payment methods, according to data from the Federal Reserve.
There's other evidence that Americans are using BNPL to make purchases outside their budget. Eighty-seven percent use BNPL to spread out payments, which is another way of making an expensive purchase more affordable. Fifty-eight percent use BNPL to avoid interest and 53% use BNPL because they didn't want to use a credit card.
Here's a full breakdown of why Americans use buy now, pay later:
| Reason for Using BNPL | 2024 | 2023 | 2022 |
|---|---|---|---|
| Wanted to spread out payments | 87% | 87% | 87% |
| Convenience | 82% | 82% | 83% |
| Avoid interest charges | 58% | 60% | 59% |
| Only way I could afford it | 58% | 55% | 56% |
| Did not want to use a credit card | 53% | 54% | 54% |
| Wanted a fixed number of payments | 49% | 46% | 46% |
| Only accepted payment method I had | 22% | 21% | 21% |
Online shopping is the most popular use of buy now, pay later
Buy now, pay later is a fairly standard option for consumers in most stores. These are the most common instances when consumers opt to use BNPL
- Online shopping: 55%
- Electronics: 44% (down from 49% in 2024)
- Clothing and fashion accessories: 40% (down from 39% in 2024)
- Groceries: 28% (up from 27% in 2024)
- Furniture and appliances: 27% (down from 40% in 2024)
- Household essentials: 24% (down from 29% in 2024)
- Food delivery: 22%
- Personal care products and cosmetics: 17% (down from 24% in 2024)
- Books, movies, music, or games: 19% (up from 16% in 2024)
Electronics being the second-most common category for buy now, pay later purchases is consistent with most Americans using buy now, pay later to buy something otherwise outside of their budget. The same could be said for clothing and fashion accessories and furniture and appliances, the latter of which can be expensive.
More BNPL users are turning to installment plans for groceries and 22% report using BNPL for food delivery. That may reflect economic pressure many Americans are facing after years of inflation.
Holiday shoppers spent $18.2 billion using buy now, pay later in 2024
BNPL accounted for $18.2 billion worth of holiday shopping in 2024, according to Adobe Digital Insights. That amounts to 7.5% of the total holiday spending projected for Americans, according to Adobe Digital Insights.
The amount of holiday shopping financed with BNPL has risen over the past three years, from $14.5 billion in 2022 to $16.6 billion in 2023, and $18.2 billion in 2024. Cyber Monday was the single largest day for buy now, pay later transactions, with consumers spending a record $991.2 million via BNPL.
BNPL users use BNPL more than credit cards
Among BNPL users surveyed by Motley Fool Money, 53% use BNPL more often than their credit card. But, just 37% of BNPL users trust BNPL providers more than credit card companies. Trust in BNPL companies compared to credit card companies jumps for Gen Z and millennials compared to older generations.
In line with other findings on buy now, pay later usage, younger respondents are more likely to use and trust buy now, pay later services more than their credit card, compared to older respondents.
| Generation | I use buy now, pay later more often than credit cards | I trust buy now, pay later providers more than credit card providers |
|---|---|---|
| Gen Z | 66% | 46% |
| Millennials | 54% | 47% |
| Gen X | 51% | 37% |
| Baby boomers | 30% | 23% |
| Total | 53% | 37% |
Younger generations may be more comfortable with BNPL services and the flexibility that it offers. They may also prefer the relatively transparent BNPL fee structure and the fact that it's a convenient, interest-free option.
Should buy now, pay later replace credit cards?
Everyone has their own needs for financial products. But many of the benefits that buy now, pay later offers are also available from the best credit cards.
In addition to benefits like a 0% introductory APR, credit card owners often have access to credit perks, purchase protections, travel benefits, and more. Plus they help users build credit, while making BNPL payments generally won't impact credit scores.
If a consumer can't be approved for a credit card, a buy now, pay later plan may be their only option if they can't save up enough cash for a purchase. And many people just don't like to use credit cards but they may want an alternate form of credit, like BNPL.
Most BNPL users keep payments below $100 a month
Fifty-seven percent of BNPL users surveyed by Motley Fool Money have an average total monthly payment of $100 or less.
Overall, 28% owe $50 or less to BNPL providers and 29% spend between $51 and $100 on BNPL each month.
For comparison, the average credit card payment each month was $363 in 2023, according to a survey from New York Life.
About a quarter of those who use BNPL make an average payment between $101 and $250 each month and 11% pay between $251 and $500. Just 4% pay between $510 and $1,000.
| Average Total Monthly BNPL Payment | 2025 | 2024 | 2023 |
|---|---|---|---|
| $50 or less | 28% | 32% | 25% |
| $51 to $100 | 29% | 26% | 26% |
| $101 to $250 | 27% | 25% | 21% |
| $251 to $500 | 11% | 10% | 15% |
| $501 to $1,000 | 4% | 5% | 8% |
| Over $1,000 | 1% | 2% | 4% |
30% of buy now, pay later users use it at least once a month
Many people swipe a credit card on a daily basis. How does BNPL compare? Here's what our survey respondents had to say:
| Generation | At Least Once a Week | Once a Month | Once Every Three Months | Once Every Six Months | Once a Year or Less Frequently |
|---|---|---|---|---|---|
| Gen Z | 13% | 17% | 13% | 4% | 14% |
| Millennials | 40% | 32% | 28% | 17% | 31% |
| Gen X | 29% | 25% | 21% | 16% | 24% |
| Baby boomers | 9% | 14% | 15% | 18% | 14% |
| Total | 8% | 12% | 23% | 44% | 17% |
The frequency of purchases made with BNPL has remained mostly stable over the past five years, with consumers turning to it more regularly, according to survey data from Motley Fool Money. Each year, between 30% and 40% of respondents who have used BNPL do so once a month or more frequently, and between 30% and 40% use BNPL once every six months or less frequently than that.
| Year | At Least Once a Week | Once a Month | Once Every Three Months | Once Every Six Months | Once a Year or Less Frequently |
|---|---|---|---|---|---|
| 2025 | 14% | 31% | 24% | 14% | 17% |
| 2024 | 13% | 27% | 19% | 10% | 31% |
| 2023 | 5% | 26% | 25% | 17% | 16% |
| 2022 | 19% | 19% | 23% | 17% | 22% |
| 2021 | 18% | 18% | 19% | 19% | 25% |
| 2020 | 19% | 19% | 23% | 17% | 22% |
32% of BNPL users have experienced issues
Thirty-two percent of BNPL users have run into problems when using BNPL services, according to Motley Fool Money's 2025 BNPL Trends Survey.
The most common issue was returning items, cited by 21% of respondents that use BNPL. Eighteen percent had issues getting a refund. Overall, 68% said they haven't encountered problems with BNPL.
Understanding interest and late fees in buy now, pay later services
Most buy now, pay later services advertise 0% interest -- but that can be a bit misleading. If you make a late payment, you'll incur at least a late fee. And you may have to pay a finance fee, too.
Here are the interest rates and late fees based on BNPL services' terms and conditions:
| BNPL Service | Interest Rate | Late Fees |
|---|---|---|
| Affirm | Up to 36% | None |
| Afterpay | 0% | For orders below $40, the late fee is capped at 25%. For orders $40 or above, an initial $10 late fee applies, with an additional $7 fee after seven days if unpaid. This continues until the 25% cap or $68 limit is reached. |
| FuturePay | $1.25 for every $50 in unpaid balance* | Up to $38 (per payment) |
| Klarna | 0% | Up to $7 (per payment) |
| PayPal Credit | 29.24% variable rate | Up to $41 (per payment) |
| Pay In 4 | 0% | None |
| Zip | 0% | Up to $10 per purchase |
| Sezzle | 0% | $10 per payment |
| Splitit | 0% | None (though your credit card will charge late fees) |
The promise of making purchases with no interest makes it seem like buy now, pay later is the clear winner over traditional credit. But is BNPL really better than a credit card?
The answer is complicated and largely depends on what consumers are looking for. For example, using a buy now, pay later service can't help your credit score, but it can hurt it.
Here are some factors that American consumers should take into account when deciding between the two:
| Buy Now, Pay Later | Credit Cards | |
|---|---|---|
| Average interest rate | 0% | 21.37% as of February 2025 |
| Typical late fee | $20 to $30 per payment | $8, according to CFPB |
| Typical repayment period | 6 weeks to 12 months | One month to repay without interest, up to 24 months with an introductory 0% APR card |
| Typical frequency of payments | Every two weeks to once a month | Once a month |
| Reports to credit bureaus | Late payments (reduces credit score) | On time and late payments (may improve or reduce credit score) |
| Credit checks | Not usually | Always |
Note that these are typical figures, and not set in stone, especially for buy now, pay later programs, which vary.
If consumers are looking to improve their credit score or have more flexibility in their repayment period, a credit card with a 0% introductory APR may be a better option. Many credit cards provide perks like credit monitoring, purchase protection, and rewards programs that BNPL providers don't yet offer, as well.
It's also worth pointing out that buy now, pay later programs don't have the same regulatory oversight as credit cards. According to Consumer Reports, some BNPL users have had trouble with disputes and returns, for example.
Has buy now, pay later usage plateaued?
Despite BNPL being offered at some of the largest retailers, the percentage of Americans who use BNPL has hardly grown. The percentage of Americans who used BNPL in the last year grew by roughly 3% from 2022 to 2024, from 12.1% to 15%. Meanwhile, late payments have increased and users are turning to BNPL to finance purchases they otherwise couldn't afford.
BNPL providers face other challenges on top of a small and slow-growing customer base. Most who use BNPL aren't making big monthly payments and are using BNPL infrequently. BNPL isn't a popular choice for everyday purchases, either.
That hasn't stopped BNPL providers from pushing into more stores. And there are other signs that companies are building loyalty with their customers. The majority of those who have used BNPL use it more often than they swipe their credit cards.
Another important factor for consumers is their willingness to give up on the benefits credit cards provide, like cash back, points, and credit score upside for making on-time payments.
This field is changing fast -- so we'll be sure to keep an eye on it and report back.
Methodology
The Motley Fool surveyed 2,000 American adults via Pollfish on May 23, 2025. Results were post-stratified to generate nationally representative data based on age and gender. Pollfish employs organic random device engagement sampling, a method that recruits respondents through a randomized invitation process across various digital platforms. This technique helps to minimize selection bias and ensure a diverse participant pool.
Separate surveys with the same methodology were carried out on July 8, 2025, July 19, 2023, June 29, 2022, March 10, 2021, and July 6, 2020.
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money.
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