Afterpay Leads the US “Pay in 4” BNPL Market with 38% of Loan Value, Topping Affirm, per the New York Fed

Key Takeaways

• Afterpay holds 38% of US “Pay in 4” loan value in 2025
• Total credit issued by Afterpay reaches $53.7 billion, 34% market share
• Affirm trails with 26% share, $12 billion less credit issued
• Cash App’s integrated banking suite boosts Afterpay’s stickiness
• Fed study omits card‑linked installments, a sizable market segment

Pulse Analysis

The buy‑now‑pay‑later (BNPL) sector has matured from a niche checkout add‑on to a mainstream financing option, especially in the United States where “Pay in 4” plans dominate short‑term credit. The New York Federal Reserve’s latest data shows Afterpay, now part of Block, has captured 38% of loan value, translating to $53.7 billion in credit issued. This scale not only eclipses its closest competitor, Affirm, but also underscores the rapid consolidation of BNPL volume under a single fintech umbrella.

Afterpay’s success is closely tied to its integration with Cash App, which provides users with a broader financial toolkit—including peer‑to‑peer payments, debit cards, and alternative credit scoring. By leveraging Cash App’s data, Afterpay can underwrite risk for underbanked consumers more effectively than traditional BNPL firms that rely solely on transaction history. This full‑stack approach creates higher user stickiness, as customers can manage everyday spending, savings, and installment payments within one app, reducing churn and driving cross‑selling opportunities.

However, the Fed’s study omits card‑linked installment products, a growing slice of the market that many shoppers prefer for its seamless integration with existing credit cards. Ignoring this segment may understate the competitive pressure on pure‑play BNPL providers like Afterpay and Affirm. As regulators scrutinize BNPL practices and consumers demand more transparent credit options, firms that blend BNPL with broader banking services are likely to maintain a strategic edge, while standalone players must either innovate or seek partnerships to stay relevant.