43% of Consumers Bail on Purchases Without BNPL Option

The PYMNTS Intelligence report “Decoding BNPL Users: Necessity, Convenience and Risk Signals” examines the evolving payment ecosystem by analyzing consumer behavior and preferences concerning BNPL.

The study highlights that BNPL has integrated into U.S. consumer payments, with many consumers reporting active accounts. Its findings indicate that BNPL usage spans age and income demographics, and consumers use this payment method for a broad spectrum of purchases, from everyday necessities like clothing and groceries to larger investments such as home furnishings and electronics.

To reach its conclusions, PYMNTS Intelligence employs proprietary data and methods, drawing on a team of data scientists, economists and financial analysts to offer insights into payments, commerce and the digital economy.

For many consumers, BNPL has emerged as a primary payment choice, to the extent that its unavailability could alter their purchasing decisions. The report delves into the varying motivations behind BNPL adoption, discerning whether consumers use it out of financial necessity — due to being cash-strapped — or for the convenience it offers in managing personal finances. This distinction largely correlates with their income levels.

Key data points from the report include:

• BNPL Account Penetration by Age and Income: The adoption rate of active BNPL accounts varies across different demographic segments in the U.S. Consumers aged 25 to 34 represent the most active user group, with nearly 1 in 4 individuals in this age bracket using BNPL. In contrast, consumers aged 65 and older are the least likely to engage with these payment plans, with just over 5% of this demographic reporting active BNPL accounts. This segmentation underscores the distinct appeal of BNPL across generational lines.
• Leading BNPL Providers: The competitive landscape of the U.S. BNPL market is led by several key players, with Klarna holding the largest estimated market share at 26.2%. Following are Afterpay, with an estimated 21.9% share, and Affirm, capturing 19.3% of the market. These figures highlight the dominant positions of these providers within the burgeoning pay-later sector.
• Consumer Action If BNPL Were Unavailable: The study illustrates the role BNPL plays in consumer purchasing behavior by assessing alternatives if the option were not available. Many consumers would either choose not to make the payment or purchase at all (43%) or opt to buy a cheaper product or service (42.4%). Additionally, 35.1% would complete the payment but delay other due payments, underscoring the influence of BNPL on overall financial management and spending patterns.

Beyond these core findings, the report also examines other aspects of BNPL usage, including the overlap with other credit products. Many consumers do not exclusively use a single type of pay-later product, and over 80% of the adult population holds credit cards. It differentiates between “Convenience” and “Necessity” users based on their financial circumstances and usage patterns of credit cards, installment plans and BNPL.

The analysis includes observations on the prevalence of past-due payments among BNPL users, which fluctuated between 23.2% and 27.5% from April 2024 to January 2025. These insights collectively paint a comprehensive picture of BNPL’s pervasive adoption, its interplay with consumer financial strategies, and its impact across diverse product categories and demographics.