Buy Now Pay Later Use Hits 51% as Americans Lean on Installment Plans to Cover Costs

More than half of Americans used Buy Now Pay Later services in 2026, according to Experian data, as rising prices pushed consumers toward installment payment options that allow purchases to be split into smaller payments over time.

The 51% usage rate marks a significant increase from prior years and reflects a broader shift in how Americans manage everyday expenses. BNPL services, offered by companies including Affirm, Klarna, and Afterpay, allow shoppers to split purchases into four or more payments, often with no interest if paid on time.

Experian's latest personal finance report found that BNPL use is highest among financially stretched households, with lower-income consumers more likely to rely on the plans for necessities like groceries and utilities rather than discretionary purchases.

Financial counselors said the growth in BNPL use is a sign of financial strain rather than a healthy financial strategy. Unlike credit cards, BNPL plans are not always reported to credit bureaus, which means missed payments may not immediately damage credit scores but can still result in late fees and collections.

The Consumer Financial Protection Bureau has been examining BNPL practices, including how companies handle disputes and whether their disclosures adequately inform consumers of the risks. Some states have moved to require clearer disclosures and stronger consumer protections.

Experts recommend that consumers treat BNPL plans with the same caution as credit cards, tracking all active plans and ensuring they have the cash flow to cover each payment before committing to a purchase. Stacking multiple BNPL plans simultaneously is a common pattern that can quickly become unmanageable.