From Pymnts · PYMNTS · · 1m 50s
Credit card installments crush BNPL in payment race
Card installment plans are outpacing buy now, pay later services as consumers prefer paying through accounts they already use.
In brief
Card installment plans are outpacing buy now, pay later services as consumers prefer paying through accounts they already use. Credit card installments are winning the pay-later market because they leverage existing customer relationships and accounts, not because they're a better product. Originally reported by…
Card installments surge past BNPL
Credit card installment use jumped to 36% in March 2026 from 23% a year earlier, while BNPL stayed flat at 15%. Consumers are using card installments at more than twice the rate of standalone BNPL services.
“consumers used card installment plans at more than twice the rate of BNPL in March 2026”
The advantage of existing accounts
Card issuers can offer installment financing within accounts consumers already use, eliminating friction. BNPL requires customers to open a new account and adopt a separate service.
“It works like an express lane inside a store customers already visit.”
Gen Z prefers card installments
Gen Z use of credit card installments rose to 47% in March 2026 from 31% a year earlier. BNPL use among Gen Z only increased to 23% from 21%, showing younger consumers want payment flexibility but not necessarily standalone BNPL apps.
Millennials follow the same pattern
Millennials and bridge millennials used card installments at roughly 1.8 to 2.5 times the BNPL rate throughout the survey period. The trend shows payment splitting appeals across younger age groups, but through existing financial relationships.
Higher earners drive BNPL adoption
Consumers earning at least $150,000 annually used BNPL at about twice the rate of those earning under $50,000. In March 2026, BNPL adoption was 20% for high earners versus 10% for lower earners.
Pay later becomes a feature, not a product
The market is shifting from standalone BNPL apps to pay-later as a feature within broader financial relationships. Banks, card networks, and fintech companies now compete on reach, account history, and merchant connections rather than a single winning product.
“pay later is becoming a feature within broader financial relationships”
The main idea
Credit card installments are winning the pay-later market because they leverage existing customer relationships and accounts, not because they're a better product.
