From Inc · · 1m
Buy Now Pay Later Market Hits $157 Billion
BNPL services now shape product affordability and customer trust for businesses.
In brief
BNPL services now shape product affordability and customer trust for businesses. Federal Reserve estimates six major BNPL providers originated $156.7 billion in U.S. consumer credit in 2025. Originally reported by Inc.
BNPL Market Size
Federal Reserve analysis estimates six major BNPL providers originated $156.7 billion in U.S. consumer credit products in 2025.
BNPL's New Role
BNPL now shapes affordability, product choice, refunds, and trust for businesses.
BNPL Providers
BNPL includes Affirm, Afterpay (owned by Block), Klarna, PayPal, Sezzle, and Zip.
Pay-in-Four Plans
Pay-in-four plans accounted for $78.3 billion, nearly 80 percent more than the Consumer Financial Protection Bureau measured in 2023.
BNPL Product Mix
Across the six providers, 63 percent of 2025 issuance carried zero percent APR and 37 percent carried interest.
BNPL Confusion
The same BNPL label can describe a four-payment, interest-free plan or a longer loan carrying interest.
Business Impact
Leaders need to treat financing as part of the offer, not a final checkout step.
What matters most
Federal Reserve estimates six major BNPL providers originated $156.7 billion in U.S. consumer credit in 2025.
