Buy Now, Pay Later Gaining Popularity

As Americans face higher costs of living, the option to buy now and pay later is gaining popularity, seeing an estimated $125 billion in payment values by 2027, according to PartnerCentric. 

BNPL options are typically interest-free and allow consumers to break up purchases into smaller payments (most often, four). And, unlike credit cards, BNPL does not currently affect credit scores. (However, it’s important to read the fine print, as not all BNPL options are the same.) 

But Americans aren’t just using BNPL for large purchases. Through a survey of over 1,000 people, PartnerCentric revealed various consumer habits when it comes to buying now and paying later. 

Who’s using BNPL? 

Survey says: 52% of Americans. By generation, that includes: 

1. Gen Z (59%) 
2. Millennials (58%) 
3. Gen X (41%) 
4. Boomers (37%) 

Additionally, 15% of respondents said they were trying BNPL for the first time this year, and 35% said they were planning on using it more in 2025. For 1 in 4, the reason for using BNPL more this year was due to the cost of living. 

How much are they spending? 

The average minimum price of a BNPL purchase was $250. The median smallest purchase was $100, and the median largest purchase was $900. And the average total monthly payment to BNPL plans was $761 (across an average of 5.6 BNPL purchases per month). 

The most popular purchases using BNPL were: 

1. Electronics (77%)
2. Furniture (45%) 
3. Home goods (43%) 
4. Clothing (43%) 
5. Accessories (38%) 

Among smaller purchases, 31% reported using it for groceries and 29% for delivering food. 

Is it too much? 

While there are pros to using BNPL, it’s important, as always, for consumers to pay attention to how much they’re spending. 

The survey found that 46% of respondents were spending more than they normally would because they use BNPL, and 49% said they make more impulse purchases due to BNPL.