Buy now, pay later usage rises among U.S. consumers

The use of ‘buy now, pay later’ (BNPL) products is increasing among U.S. consumers, moving beyond luxury items to everyday purchases like groceries, food delivery, and apparel. According to the Federal Reserve’s 2025 household survey, 16% of U.S. adults reported using BNPL in the previous 12 months, an increase from 10% in 2021.

While BNPL offers convenience, it presents financial risks. The integration of small, overlapping installment plans can lead to a difficult-to-manage cycle of due dates, fees, and overdrafts. Retailers favor these services because they can significantly boost revenue and conversion rates; for example, Affirm has reported revenue lifts of up to 14% for certain merchants.