BNPL adoption trends (buy now, pay later) have accelerated in 2025 as consumers embrace the flexibility of splitting purchases into installments without interest charges. From groceries to electronics, shoppers are using these services to better manage their budgets and maintain purchasing power in an uncertain economic environment. Among the different BNPL players, Consumer Edge data shows that Klarna has captured the most market share in the U.S., followed by Affirm and Afterpay. This leading position is likely driven by Klarna’s extensive retail partnerships and user-friendly app experience, while Affirm’s strength in higher-ticket purchases and transparent financing terms have solidified its position as the second-largest player.
Looking beyond the competitive landscape, CE data reveals important patterns as to who is embracing BNPLs the most. Consumer Edge data reveals that BNPL adoption has grown across all income levels, but usage has an inverse relationship with income. Lower-income consumers are adopting these services at the highest rates, likely relying on BNPLs to avoid credit card debt or interest payments. As household income increases, BNPL usage steadily declines, with the highest earners, those making $150k or more, showing the lowest adoption rates. The gap in usage between the lowest and highest earning households has also widened over time, suggesting that lower-income customers may be increasingly turning to BNPLs as a tool to manage inflation and rising costs. This trend suggests that while BNPL appeals universally as a convenient payment option, it serves as more of a financial necessity for lower-income shoppers managing tighter budgets, whereas higher-income consumers with greater access to traditional credit and payment options are less reliant on installment payments.
Shifting to new BNPL customers, those who made no BNPL purchases in 2024 but made at least one BNPL purchase in 2025, shows distinct overall spending patterns compared to the broader customer base. When examining their total spending, these newcomers allocate a greater share of spending to categories like discount retailers, gambling, and warehouse clubs, suggesting they tend to be more budget-conscious consumers prioritizing value and bulk purchases. Conversely, new BNPL users spend proportionally less of their overall budgets at grocers, convenience stores, gas stations, and online broadline retailers compared to all shoppers. This spending profile indicates that individuals drawn to BNPL may already have distinct shopping behaviors, favoring discretionary purchases and deal-seeking over everyday essentials, which could explain why they’re attracted to the payment flexibility of BNPLs.
2 thoughts on “Four Payments, One Story: The Rise of BNPL”
Comments are closed.