BNPL services are expanding fast

Buy now, pay later (BNPL) services were introduced years ago as a handy way to upgrade your phone early, or splurge on a birthday experience.

Fast forward to today, and BNPL has quietly become a budgeting tool for everyday life, with a growing number of Americans using the services for groceries, gas, and other essentials.

By the numbers

The total number of BNPL users in the US currently stands at 91.5 million, up from 86.5 million in 2024, with the average loan amounting to $135 over six weeks, according to Capital One Shopping Research.

• Among those US users, a record-high 25% say they use BNPL services to pay for groceries, up from 14% last year, per a recent LendingTree survey.

Delinquencies are also on the rise. More BNPL users are embracing the “Buy now, worry later” mantra, with a record-high 41% reporting at least one late payment this year. That figure is up from 39% in 2024 and 34% in 2023.

At the same time, most BNPL loans aren’t reported to credit bureaus, creating what regulators call “phantom debt” and forcing US lenders to assess risk without seeing the full picture.

Looking ahead…Analysts say any further increase in BNPL delinquency will likely have spillover effects on other consumer credit products, including auto loans, student debt, and credit card balances.