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Fast Company
23-07-2025
- Business
- Fast Company
Buy now, pay later: Why 52% of Americans trust it—and what brands need to know
Buy now, pay later (BNPL) is reshaping how Americans approach spending. Once viewed as a financing solution for bigger-ticket purchases, the service has grown into an everyday convenience with the potential to disrupt how businesses connect with and convert customers. At PartnerCentric, we conducted a nationwide survey of more than 1,000 consumers to understand BNPL's current adoption and future trajectory. The insights surprised even us: BNPL is not just growing—it's fundamentally altering the consumer journey in ways that smart businesses should pay attention to. According to our data, 52% of U.S. consumers currently use BNPL, with Gen Z and Millennials leading the charge. What's more, 15% of consumers are trying it for the first time in 2025, with 35% saying they plan to increase their usage this year. They are also using this payment option across a range of categories, from electronics and home goods to groceries and even food delivery. In a recent conversation with Newsweek's Hugh Cameron, I discussed how BNPL plans have transcended simple checkout convenience. Now they're empowering shoppers to set their own financial rhythms, whether that means smoothing out weekly grocery bills or snagging concert tickets without delay. This evolution reflects a deeper consumer craving for payment tools that bend to the tempo and tensions of everyday life. Brands should seize this moment by positioning BNPL as a tool of empowerment, leading with messaging that emphasizes customer control over cash flow and weaving installment options into product pages, cart previews, and marketing touchpoints. Partnering on co-marketing promotions with BNPL platforms can extend your reach to already-engaged shoppers. Consider curating bundles or exclusive offers that resonate with high-margin items, based on an analysis of which categories and SKUs see the biggest lift with BNPL. From our study, what stood out is how BNPL affects purchasing behavior. The average user now makes five purchases per month using BNPL, totaling around $761 in monthly payments. What's more, nearly half of users admitted to spending more than they would have without the service or said that it increased their impulse buying. This data tells brands that BNPL isn't just a new way to pay. It's a proven catalyst for bigger baskets and more frequent purchases. You're looking at a predictable uplifter for both average order value and overall sales volume. By actively promoting—and optimizing—installment plans throughout the shopping journey, you can tap into consumers' willingness to spend more and buy more often. CHECKOUT IS WHERE BNPL MAGIC HAPPENS One of the most actionable insights from our study is that BNPL is often discovered in the moment. One-third of consumers tried it for the first time at checkout, and another 34% said they first heard about it from friends and family. Meanwhile, the Federal Reserve Bank of Boston's 2023 Survey and Diary of Consumer Payment Choice found that 53% of respondents had BNPL explicitly offered to them, up from roughly one-third in 2021. This underscores how point-of-sale prompts have become a primary discovery channel. Offering BNPL doesn't just give customers another way to pay. It creates an opportunity to remove hesitation and nudge decisions forward when price might otherwise be a blocker. For many, it feels like a risk-free trial run on spending. A seamless technical integration—ideally, one-click pre-qualification—will ensure the flexibility you promise doesn't stall at the 'buy' button. Ongoing monitoring of conversion rates, average order values, repeat-purchase behavior, and evolving regulatory requirements will then help you fine-tune your strategy and maintain compliance. CREDIT CARD ALTERNATIVE—OR CREDIT CARD COMPETITOR? Among BNPL users, most say they prefer it to using a credit card. And it's easy to see why. Unlike credit cards, BNPL services typically don't charge interest or immediately affect credit scores. So these platforms are seen as more trustworthy and less intimidating than traditional credit. Still, the landscape is shifting. Credit bureaus like Experian and FICO have started including BNPL data in reports, prompting mixed reactions. Some experts urge caution, while others feel it is a necessary reality in today's economic environment. This evolution signals a move toward normalization—and possibly even regulation—as the appetite for BNPL remains strong. BNPL IS A STRATEGIC SIGNAL, NOT A SALES TACTIC For modern consumers, financial flexibility isn't a perk—it's a baseline as they consider how to manage money in an economy defined by volatility and high expectations. So brands must rethink how they meet their customers. Buy now, pay later isn't about pushing debt—it's about offering control, convenience, and choice in one click. It says, 'We get it. We've built it for your reality.' That kind of empathy at checkout builds trust, loyalty, and relevance. As the cost of living continues to rise and credit card fatigue grows, BNPL offers something rare: a solution that works for both the business and the buyer. Brands that treat BNPL as a strategic layer in the customer experience can see measurable impact: higher conversions, larger baskets, and deeper engagement. So if you want to stay connected to the pace of real life, now is the time to lean in. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is this Friday, July 25, at 11:59 p.m. PT. Apply today.
Miami Herald
12-05-2025
- Business
- Miami Herald
Buy Now, Pay Later Explodes in Popularity Amid Economic Anxiety
Americans are increasingly turning to short-term financing, or "buy now, pay later" options to cover their everyday essential purchases. According to research by New York-based marketing agency over half (52 percent) of all Americans now use BNPL, with those in the Gen Z and Millennial age brackets leading the way at 59 percent and 58 percent, respectively. The firm found that the 35 percent plan to use the method more this year, and this figure rises to 65 percent for Gen Zers. Even prior to President Donald Trump's tariff announcements in early April, and the subsequent hikes to China's rates, Americans were showing signs of financial stress, such as cutting back on their usual purchases. Some, including BNPL providers, have framed it as a reliable and convenient budget-management tool which spares users the need to complete credit checks or worry about interest payments. However, experts have told Newsweek previously that the growing popularity of instalment-based payments serves as an indication of declining financial savviness, but also the toll inflation and general economic certainty has taken on average Americans' budgets. According to PartnerCentric's survey, based on responses from over 1,000 Americans nationwide, one-in-four admit to using BNPL more due to the rising cost of living, with 15 percent trying it for the first time in 2025. The most popular purchases were for medium to large items, such as electronics, furniture and home goods-the average minimum price being $250. However, 31 percent admitted to using BNPL for groceries. A survey from online lending marketplace LendingTree found that the number of respondents using BNPL for groceries had risen to 25 percent from 14 percent a year prior. LendingTree analyst Matt Schulz told Newsweek that, despite the payment method being conceived as a means of splitting up more costly purchases, this development was "further proof of the toll that inflation, high interest rates, and general economic uncertainty continue to take on American families." The new partnership between BNPL provider Klarna and food delivery company DoorDash was similarly cited as a worrying recession indicator, with economist Gary Hufbauer describing the deal as "a barometer of true desperation." This is in addition to the results of recent consumer surveys, which have revealed declining confidence about the state and trajectory of the U.S. economy. The Conference Board's latest survey found that revealed a broad-based decline in consumer confidence in April, the fifth consecutive monthly drop, with consumers' expectations for the future falling to a 13-year low. Stephanie Harris, CEO & founder of PartnerCentric, told Newsweek: "The rise of BNPL isn't just about convenience-it's about control. Americans are using it to navigate life on their terms, whether that means spreading out the cost of groceries or grabbing tickets to a show." "This shift tells us consumers are looking for tools that match the pace and pressure of modern life," she added. "For brands, offering BNPL isn't just a checkout upgrade-it's a signal that you understand your customers' reality and want to empower their choices. BNPL is becoming less about delaying payments and more about designing a financial rhythm that works for you." Personal finance expert George Kamel described BNPL as "the new credit card-without the plastic," telling Newsweek that using the method for smaller purchases such as food delivery would mean Americans "eat their way further into debt, four payments at a time." Stephanie Guichard, Senior Economist for Global Indicators at The Conference Board, said: "Consumer confidence declined for a fifth consecutive month in April, falling to levels not seen since the onset of the COVID pandemic. The decline was largely driven by consumers' expectations." "In addition, expectations about future income prospects turned clearly negative for the first time in five years, suggesting that concerns about the economy have now spread to consumers worrying about their own personal situations," she added. David Rosenberg, founder and president of financial research firm Rosenberg Research, told Newsweek previously: "Uncertainty causes consumers and firms to become more cautious about their spending plans. The tariff actions by themselves will be met first with a contraction in real incomes, which will translate into declining consumer expenditures, which represent nearly 70 percent of GDP." Klarna, in a March blog post, wrote: "For a healthier financial future, debit cards and Buy Now, Pay Later should replace high-cost, revolving credit. Americans should put most of their day-to-day spend on a debit card and use interest-free, installment credit for the few times they need to access credit." While the Trump administration has downplayed the possibility of a recession, economists are increasingly erring towards the possibility of an economic downturn in 2025. Some 60 percent of economists polled in a recent Reuters survey rated the likelihood as high to very high, with 39 percent viewed it as low. Related Articles DoorDash Offering Payment Plans for Food Delivery Sparks BacklashAmericans Buy Now But Want to Pay LaterApple Wallet Is iPhone's New Secretly Sticky AppYou Can Buy Gas Now and Pay Later in Installments With Klarna Deal 2025 NEWSWEEK DIGITAL LLC.
