Buy Now, Pay Later usage rises among US households

Installment financing is becoming a more frequent component of monthly spending for American households. According to the Bank of America Institute, 8.3% of households in its banking dataset made at least one Buy Now, Pay Later (BNPL) payment in September, an increase from approximately 5% four years ago.

Nearly one in five households using these services made repayments exceeding $500 during the month of September. While clothing, electronics, and furniture remain primary categories for BNPL use, the service is increasingly applied to everyday expenses. For example, 29% of users earning less than $50,000 annually reported using the service for groceries or food delivery, compared to 9% of those earning $100,000 or more.

In the retail sector, kitchenware retailer Sur la table has partnered with Affirm to offer customers biweekly or monthly payment options. The partnership allows eligible customers to pay for items over time, with Affirm providing transparent payment schedules and no late or hidden fees.