Americans Spent $160 Billion via BNPL Plans in 2025
The use of pay-in-four financing grew 80 percent since 2023 as households increasingly covered daily expenses with short-term loans.
Updated on Oct. 9, 2026 in Spending
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U.S. consumers utilized buy now, pay later (BNPL) services for $160 billion in purchases throughout 2025. This surge in volume highlights how households are increasingly relying on installment debt to manage essentials like groceries and rent.
Why it matters
The rapid adoption of these plans stems from households seeking to bridge cash flow gaps for everyday bills. As usage scales, consumers must now navigate how different lenders report their payment behavior to major credit bureaus, which can impact personal credit scores.
Consumers spent over $160 billion on BNPL plans in 2025, an 80 percent increase in pay-in-four usage since 2023. Half of this total volume originated specifically from pay-in-four financing agreements.
The players
Affirm
A financial technology lender that reports consumer credit activity to major credit bureaus.
Klarna
An international retail bank and payments provider that reports credit data to credit bureaus.
Afterpay
A point-of-sale installment provider that does not currently report payment activity to credit bureaus.
Equifax, Experian, and TransUnion
The three national credit reporting agencies that collect and maintain individual consumer credit histories.
The details
Pay-in-four plans allow consumers to split purchase costs into four equal installments typically spanning six weeks. While some lenders report credit activity to bureaus like Experian and TransUnion, others like Afterpay do not, complicating how these balances appear on a user's credit history. To avoid late fees, consumers must manually track overlapping payment schedules for multiple active loans.
Timeline
2023 served as the baseline for the observed 80 percent growth in usage.
2025 saw total consumer spending on BNPL plans reach $160 billion.
Money Landscape
The massive 2025 spending volume reflects a significant shift in how households approach short-term liquidity. This trend marks a departure from traditional revolving credit use as installment plans become embedded in routine monthly budgeting.
If you utilize these plans to manage cash flow, check your lender's policy on credit reporting to understand how your payment history may influence your credit score. Review your upcoming installment dates weekly to ensure your total monthly commitments remain aligned with your income.
The takeaway
Using installment plans for recurring expenses like groceries or rent requires disciplined scheduling to avoid high late fees. Consider setting up automatic notifications for each payment due date to ensure you never miss an installment across multiple active providers.
Further reading
Learn more about managing your household budget and short-term debt in our Spending section.
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