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Over Half of Americans Now Rely on Buy Now, Pay Later for Everyday Expenses

As installment-based payment plans grow in popularity, experts warn of rising debt risks, especially among younger generations.

A woman shops at a supermarket on April 30, 2025 in Arlington, Virginia.
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Overview

  • A recent survey reveals that 52 percent of Americans use Buy Now, Pay Later (BNPL) services, with Gen Z and Millennials leading adoption at 59 and 58 percent, respectively.
  • While initially popular for larger purchases like electronics and furniture, 31 percent of users now rely on BNPL for essentials such as groceries.
  • Economic pressures, including inflation and rising costs of living, have driven 25 percent of Americans to increase their BNPL usage, with 15 percent trying it for the first time in 2025.
  • Experts caution that the ease of access and lack of credit reporting for BNPL loans may encourage overspending and impulsive financial habits.
  • Regulatory efforts are underway to integrate BNPL into traditional credit systems, as its widespread use highlights gaps in consumer financial literacy and protections.