BNPL Gains Popularity, but Compliance and Risk Concerns Deter Bank Adoption

Buy Now Pay Later (BNPL) “Pay in 4” plans typically split a purchase into no more than four installments over six to eight weeks, with an average loan size of $135, according to the Financial Technology Association. The product has gained importance as households contend with cost-of-living pressures and high credit-card interest rates. Supporters say its fixed schedules and lack of revolving balances offer flexibility, while its growth has sharpened the policy debate over access, underwriting and consumer safeguards.

On July 22, the FTA released a HarrisX survey of 1,890 U.S. adults conducted online from June 18 to June 23, 2026. It found 91% of BNPL users and 77% of all adults viewed the plans as a net positive, while 87% of users said they helped reduce reliance on high-interest credit cards. Some 88% of users, versus 75% of Americans overall, said elected officials should protect access. The industry group said it supports appropriate regulation that preserves payment flexibility while maintaining consumer protections.

Buy now, pay later, or BNPL, allows consumers to split a purchase into installments, typically four, and has evolved from a checkout option into a tool for everyday spending. FinTech providers have driven most of the market’s growth. Although banks earn higher ratings thanks to their credit card relationships and brand trust, their products account for only a small share of BNPL spending, reflecting limited availability and promotion.

J.D. Power released a survey on March 12, 2026, showing that 37% of U.S. consumers had used BNPL in the previous 90 days, up 5 percentage points from a year earlier. Usage reached 50% among consumers under 40. Satisfaction with bank BNPL offerings rose 59 points from the previous year to 704, compared with 603 for FinTech providers. The survey covered 3,909 users and was conducted from January 2025 to January 2026.