Nearly Half of U.S. Buy Now Pay Later Users Paid Late on at Least One Loan in the Past Year, up 13 Points in Two Years

Key Takeaways

• 47% of U.S. BNPL users missed a payment last year
• Late‑payment rate rose 13 points since 2024
• 54% say BNPL is essential for meeting basic expenses
• Grocery purchases via BNPL doubled to 29% of borrowers
• 24% hold three or more BNPL accounts simultaneously

Pulse Analysis

The latest LendingTree data underscores a sharp uptick in BNPL delinquency, with nearly half of borrowers falling behind on at least one payment. This trend reflects broader shifts in consumer finance, as shoppers increasingly rely on installment plans for everyday needs—from groceries to household essentials. The convenience of “buy now, pay later” masks the underlying debt accumulation, especially among younger and lower‑income segments who lack traditional credit buffers.

Regulatory scrutiny has lagged behind the rapid expansion of BNPL services. After the CFPB rolled back a rule that would have aligned BNPL with credit‑card regulations, state attorneys general have stepped in, targeting firms like Klarna and Affirm. The fragmented oversight raises concerns about consumer protection, disclosure standards, and the ability of regulators to monitor systemic risk. Without uniform guidelines, lenders may face uneven compliance costs while consumers remain vulnerable to hidden fees and escalating debt.

Looking ahead, lenders and fintech platforms must balance growth with responsible underwriting. Incorporating more rigorous affordability checks and transparent repayment terms could mitigate default risk and restore confidence among regulators. Meanwhile, investors should watch for potential credit‑loss provisions as delinquency rates climb. For consumers, the data serves as a cautionary signal: reliance on BNPL may provide short‑term liquidity, but it also amplifies long‑term financial strain if not managed prudently.