Consumers Draw Clearer Lines Between BNPL and Credit Card Installments

Buy now, pay later (BNPL) services and installment plans allow consumers to spread a purchase over multiple payments and have become important fintech alternatives to credit cards. When wages and other income stop growing, households may use these tools to bridge short-term funding gaps, but they also face the risks of accumulating multiple debts and mounting repayment pressure.

The latest data from the U.S. Bureau of Economic Analysis showed that personal income fell 0.1% month over month in February, while personal consumption expenditures rose 0.5% over the same period. The figures highlight a widening gap between shrinking income and continued spending growth. Related reports did not disclose a specific dollar amount for BNPL transactions but said more consumers were using BNPL and installment products to sustain everyday spending.

Retail loyalty programs once relied on co-branded credit cards, points and discounts, based on frequent store visits and allegiance to a single brand. Consumers now use BNPL and installment plans to manage cash flow across platforms. Marqeta Chief Revenue Officer Todd Pollak says loyalty has shifted toward measurable financial value, warning that retailers focused solely on store cards risk losing transaction data and customer relationships.

PYMNTS reported on April 2, 2026, that Marqeta had become the first issuer processor certified for Visa Flexible Credential. It has launched VFC cards for Affirm and Klarna and also supports Mastercard One. No investment or transaction value was disclosed. The technology allows a single payment credential to switch among funding sources, including debit and installment plans, while directing rewards back to the retail brand.