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Buy Now, Pay Later Statistics 2026: Market Size, Adoption, Trends, and Risks
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TL;DR:
- US BNPL credit issuance was an estimated $156.7 billion in 2025 (Federal Reserve, June 2026). Global GMV of about $560.1 billion is a separate market-research estimate.
- Afterpay leads US BNPL market share at 34% of 2025 issuance, ahead of Affirm (26%), PayPal (17%), Klarna (15%), Zip (5%) and Sezzle (2%).
- 16% of US adults used BNPL in 2025, and 47% of users say they paid late in the past year, yet only 1.83% of BNPL loans were charged off in 2023 (CFPB).
- US shoppers spent $20.0 billion online with BNPL in the 2025 holidays, up 9.8%; Adobe forecasts $21.3 billion for 2026.
- BNPL is not always interest-free: about 63% of 2025 US issuance carried 0% APR, down from 83% in 2020-2021.
Buy now, pay later (BNPL) is point-of-sale credit that lets a shopper split a purchase into installments. US BNPL credit issuance reached an estimated $156.7 billion in 2025, and global BNPL GMV is estimated at about $560 billion.
This page collects the latest buy now pay later statistics for 2026: BNPL market size, growth, adoption, market share, default rates, ecommerce impact and trends. Each figure shows its geography, period and source, and whether it is an actual or a forecast.
Last updated: October 29, 2026. This update of our BNPL statistics adds Affirm fiscal 2026 results, Klarna Q2 2026 results, PayPal 2025 BNPL volume, Adobe holiday data for 2025 and its 2026 forecast, CFPB loan data and LendingTree's 2026 late-payment survey.
If you cite data from this page, please credit Chargeflow and link to this article. For the disputes behind these numbers, see our guide to BNPL dispute evidence.
Top-Line BNPL Statistics for 2026
These are the headline BNPL stats. Each one measures something different, so read the label before you compare two numbers.
Scroll to compare all columns. Use the arrow keys when the table is focused.
$156.7B US BNPL credit issuance, 2025 (Federal Reserve estimate) | ~$560B Global BNPL GMV, 2025 (market-research estimate) |
16% US adults who used BNPL in 2025 (Federal Reserve survey) | 47% BNPL users who paid late in the past year (LendingTree, 2026) |
$20.0B US online holiday spend paid with BNPL, Nov-Dec 2025 (Adobe) | 1.83% Share of BNPL loans charged off, 2023 (CFPB, six lenders) |
Sources: Federal Reserve (June 2026 note and May 2026 household survey), LendingTree, Adobe, CFPB. Full links are in the table below and in Sources.
The table adds the geography, period and source for each figure.
| Measure | Value | Geography and Period | Source |
|---|---|---|---|
| Total BNPL credit issuance | $156.7 billion (estimate) | United States, 2025 | Federal Reserve, June 2026 |
| Share of issuance with 0% APR | About 63%, down from 83% in 2020-2021 (estimate) | United States, 2025 | Federal Reserve, June 2026 |
| Market GMV | About $560.1 billion (market-research estimate) | Global, 2025 | Analyst estimate; not independently verified |
| Provider revenue (market definition varies) | $44.89 billion (2025) and $54.56 billion (2026 forecast) | Global, 2025 and 2026 | Fortune Business Insights |
| BNPL users | About 380 million (2024); about 670 million (2028 forecast) | Global | Juniper Research |
| Adults who used BNPL | 16%, up 1 point from 2024 (survey) | United States, 2025 | Federal Reserve SHED, May 2026 |
| Users who paid late in the past year | 47% (41% in 2025, 34% in 2024) (survey) | United States, 2026 | LendingTree, 2026 |
| Online holiday spend paid with BNPL | $20.0 billion, up 9.8% (actual); $21.3 billion forecast for 2026 | United States, Nov 1 to Dec 31 | Adobe, Jan 2026, Adobe, Sept 2026 |
| BNPL loans and charge-offs | 335.8 million loans; 1.83% of loans charged off (actual) | United States, 2023, six lenders | CFPB market report, Dec 2025 |
How to Read the Numbers
- GMV: the total value of purchases made with BNPL at merchants. It is a volume measure, not what BNPL companies earn.
- Credit issuance: the amount of credit originated. The Federal Reserve measure is for the United States only.
- Provider revenue: what BNPL companies earn from merchant fees, interest and other income. It is far smaller than GMV, and published estimates differ widely because market definitions differ.
- Users: estimates may count unique consumers, accounts or active borrowers. The user figures here come from a forecaster and should be read as estimates, not a census.
- Forecasts: labeled as such. Treat 2026 and later values as projections, and note whether a year is a calendar year or a company fiscal year.
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BNPL Market Size 2026: Growth and Forecasts
How big is the BNPL market? It depends on what you measure. Most buy now pay later market size figures fall into three types:
- Global GMV: about $560.1 billion in 2025. This is a market-research estimate, not a figure from provider filings.
- US credit issuance: $156.7 billion in 2025, per the Federal Reserve, built from six providers' disclosures.
- Provider revenue: $44.89 billion in 2025 and $54.56 billion forecast for 2026 under a broad definition (Fortune Business Insights). It runs far lower because it measures earnings, not volume.
Do not add or compare these as one market size. The series below are only comparable with series of the same type.
| Series | What It Measures | Geography | 2025 Value | Comparable To |
|---|---|---|---|---|
| GMV | Value of purchases made with BNPL | Global | About $560.1 billion (estimate) | Other GMV series only |
| Credit issuance | Credit originated by six large providers | United States | $156.7 billion (Federal Reserve estimate) | Other US issuance series only |
| Provider revenue | Earnings of BNPL companies | Global | $44.89 billion under a broad definition (Fortune Business Insights estimate) | Other revenue series with the same definition |
BNPL Market Growth
Buy now pay later growth is still positive, but it is slowing at the consumer level while the largest providers keep growing fast. The latest data points:
- CFPB loan data: six large lenders made 335.8 million BNPL loans worth $43.9 billion in 2023, up from 273.8 million loans and $33.4 billion in 2022 (nominal dollars).
- Adobe holiday data: US shoppers spent $20.0 billion online with BNPL in November and December 2025, up 9.8% year over year. Adobe forecasts $21.3 billion for the 2026 season, up 6.6%.
- Provider growth: Affirm GMV grew about 37% in fiscal 2026, PayPal BNPL volume grew more than 20% in 2025, and Klarna GMV grew 18% in Q2 2026. These periods differ, so treat them as separate signals, not one growth rate.
US Buy Now Pay Later Market: Federal Reserve Product Overview
The Federal Reserve, June 2026 note estimates total US BNPL issuance at $156.7 billion in 2025. It builds the estimate from public filings and investor materials of six providers: Afterpay, Affirm, PayPal, Klarna, Zip and Sezzle.
Where US-specific data was missing, the note applies scaling factors. Its shares describe those six providers within US issuance. They are not worldwide market shares and are not comparable to global GMV.
BNPL Market Share by Provider (US, 2025)
Afterpay leads US BNPL market share with 34% of 2025 issuance, ahead of Affirm at 26% and PayPal at 17%.
| Provider | Share of 2025 US Issuance | Issuance Volume | Actual or Forecast |
|---|---|---|---|
| Afterpay (Block) | 34% | $53.7 billion | Estimate |
| Affirm | 26% | $41.3 billion | Estimate |
| PayPal | 17% | $26.5 billion | Estimate |
| Klarna | 15% | $23.9 billion | Estimate |
| Zip | 5% | $7.3 billion | Estimate |
| Sezzle | 2% | $3.9 billion | Estimate |
The same note splits 2025 US issuance by product type:
$78.3 billion in issuance
Four payments, short term.
$31.2 billion in issuance
$47.1 billion in issuance
APR up to 36% and terms up to 5 years at one provider.
Source: the Federal Reserve note cited above. Estimates cover the US activity of six providers; they are not global GMV.
Share of issuance
Share of issuance
BNPL is therefore not always interest-free: the label covers products ranging from short, no-interest splits to longer loans with interest. Source: the Federal Reserve note cited above.
BNPL Usage and Consumer Adoption Statistics
How many people use buy now pay later? About 16% of US adults used BNPL in 2025, up 1 point from 2024, according to the Federal Reserve household survey. Survey wording changes the answer: LendingTree found that 47% of Americans have used a BNPL service at least once.
- Global users: Juniper Research estimated about 380 million BNPL users in 2024 and forecasts about 670 million by 2028 (Juniper Research).
- Klarna: 120 million active consumers in Q2 2026, up from 118 million for full-year 2025.
- Affirm: 27.8 million active consumers at June 30, 2026, up 21%.
- Loan size: the average BNPL loan was $131 in 2023 across six lenders (CFPB, nominal).
- Everyday spending: 29% of BNPL users have used it for groceries, up from 25% a year earlier and 14% two years earlier (LendingTree).
- Why people use it: easy to use (31%) and easy to get (27%). Interest-free terms were the least-cited reason (11%).
User counts follow each source's own definition. Provider "active consumers" are company-defined, and CFPB user counts may double-count people who borrow from several lenders. Do not add them together.
The CFPB, Dec 2025 analyzed data from six large BNPL companies for 2019 to 2023. It covers loan volume, users, frequency of use, average loan size, late fees and charge-off rates. Use it for US borrower behavior and do not extend it to other markets.
BNPL Default Rates and Late Payments
BNPL default rates are low, but late payments are common. These are two different measures:
- Charge-offs: 1.83% of BNPL loans were charged off in 2023, down from 2.63% in 2022. Measured against loan value, the rate was 0.92% (CFPB).
- Late fees: 4.1% of loans were charged a late fee in 2023, down from 5.2% in 2022, at the four lenders that charge late fees.
- Self-reported late payments: 47% of BNPL users say they paid late in the past year, up from 41% in 2025 and 34% in 2024 (LendingTree survey).
- Bank fees: 11% of BNPL users had a BNPL payment trigger an overdraft or insufficient-funds fee in 2025 (Federal Reserve survey).
Late payments rarely hit the merchant directly, because the provider carries the credit risk. But a shopper under payment pressure is more likely to dispute an order. That is where BNPL becomes a merchant problem.
BNPL and Ecommerce: Holiday Spend, Conversion and Average Order Value
The ecommerce BNPL market keeps growing, and it peaks around the holidays. Adobe tracks BNPL spending across US retail sites:
Scroll to compare all columns. Use the arrow keys when the table is focused.
| Metric (US online, Nov 1 to Dec 31) | 2025 Actual | 2026 Forecast |
|---|---|---|
| BNPL online spend | $20.0 billion (up 9.8%) | $21.3 billion (up 6.6%) |
| BNPL spend on Cyber Monday | $1.03 billion, a record day (up 4.2%) | $1.09 billion |
| Total online holiday spend | $257.8 billion | $275.1 billion (up 6.7%) |
| Share of BNPL purchases made on mobile | 82.2% | Not forecast |
Sources: Adobe 2025 holiday recap, Adobe Cyber Monday 2025 and Adobe 2026 holiday forecast. By our math, BNPL covered about 7.8% of US online holiday spend in 2025 ($20.0 billion of $257.8 billion).
Does BNPL Increase Average Order Value?
Provider data says yes, but those numbers come from the providers. Affirm reports up to a 14% revenue increase on Affirm-eligible sessions and up to a 21% relative lift in conversion on purchases of $250 or more. Merchant case studies on the same page report average order value gains of 20% to more than 30% (Affirm data on Stripe).
Results vary by store, price point and category. To measure BNPL ROI on your own store, track these numbers before and after launch:
- Average order value on BNPL-eligible carts
- Checkout conversion on carts above the BNPL minimum
- Share of BNPL orders from new customers
- Provider fees per order
- Refund, return and dispute rates on BNPL orders
Provider Data
Provider-reported figures use each company's own definitions and reporting periods. Klarna reports on a calendar year. Affirm reports on a fiscal year ending June 30. The rows are not a like-for-like comparison.
Scroll to compare all columns. Use the arrow keys when the table is focused.
| Provider | Period | Reported Figures | Source | Actual or Forecast |
|---|---|---|---|---|
| Klarna | Q2 2026 | GMV $36.6 billion (+18%); revenue $1.04 billion (+27%); 120 million active consumers; more than 1.2 million merchants (+54%) | Klarna Q2 2026 results | Actual |
| Klarna | Calendar year 2025 | Revenue $3.5 billion (+25%); GMV $127.9 billion (+22%); 118 million active consumers; 966,000 merchants | Klarna FY2025 results | Actual |
| Affirm | Fiscal year ended June 30, 2026 | GMV $50.2 billion, up from $36.7 billion in fiscal 2025 (about +37%); 27.8 million active consumers (+21%) | Affirm 10-K, FY2026, Affirm FY Q4 2026 supplement | Actual |
| Affirm | Fiscal year ended June 30, 2025 | GMV $36.7 billion; about 377,000 active merchants | Affirm 10-K, FY2025 | Actual |
| PayPal | Calendar year 2025 | BNPL total payment volume of more than $40 billion, up more than 20% | PayPal Q4 2025 investor update | Actual |
| Afterpay (Block) | Calendar year 2025 | About $53.7 billion of US issuance, 34% share (US only) | Federal Reserve, June 2026 | Estimate |
For side-by-side views, see our Klarna vs Affirm comparison, the Affirm vs Afterpay comparison, the Klarna vs Afterpay comparison and the Affirm vs PayPal comparison. Our PayPal statistics cover PayPal's wider payments business.
Buy Now, Pay Later Trends 2026 and the Future of BNPL
The BNPL industry is moving from fast growth to a more regulated, more credit-like phase. These are the BNPL trends the data supports:
- Regulation is live in the UK: the FCA began regulating BNPL on 15 July 2026, with affordability checks and missed-payment support. The EU's revised Consumer Credit Directive applies from November 2026.
- Less interest-free credit: the 0% APR share of US issuance fell from 83% in 2020-2021 to about 63% in 2025. Longer, interest-bearing loans are growing.
- More everyday spending: 29% of BNPL users have bought groceries with it, more than double the share two years earlier.
- Mobile first: 82.2% of BNPL holiday purchases in 2025 were made on mobile devices.
- Wider merchant reach: Klarna's merchant base grew 54% to more than 1.2 million in Q2 2026.
- Slower holiday growth: Adobe expects BNPL holiday spend to grow 6.6% in 2026, after 9.8% in 2025.
- AI shopping agents: as agents complete checkouts for shoppers, AI agent chargeback liability is becoming a new question for providers and merchants.
For merchants, the takeaway is simple. More BNPL orders, longer loan terms and more stretched borrowers mean more BNPL disputes to manage.
BNPL Chargebacks, Disputes and Merchant Responsibilities
A BNPL chargeback works differently from a card chargeback. If you are new to the basics, start with what a chargeback is. Three workflows are often called a "BNPL chargeback," and they are different. Fraud is a separate risk, covered in our guide to BNPL fraud.
A merchant settlement dispute happens inside the provider's own process, for example when a customer says an item never arrived.
A borrower repayment issue is between the customer and the provider and does not involve the merchant unless the provider later reverses a settlement. Our guide to Klarna dispute reconciliation shows how those reversals appear in settlement reports.
A card-funded repayment dispute occurs when the customer pays an installment with a card and disputes that card charge with the card issuer, which follows card network rules.
Check the provider's current merchant terms for which workflow applies to your integration.
The matrix below uses the providers' own merchant documentation. It is not a complete legal summary, so confirm the details in your merchant agreement.
| Provider | Where Merchants Respond | Response Window | Outcome If the Merchant Loses | Source |
|---|---|---|---|---|
| Affirm | Affirm Merchant Portal, Disputes dashboard | Typically 15 days from notification, with reminders 7 days and 1 day before the due date | Affirm refunds the customer and the merchant reimburses Affirm, plus a $15 dispute fee | Affirm Business Hub |
| Klarna | Disputes list in the Kustom portal | 35-day enquiry phase; then one structured response within 13 days of escalation to the chargeback phase | Funds are deducted and Klarna refunds the customer; fees apply to lost disputes and vary by buyer location | Klarna (Kustom) help |
| Afterpay | Check your Afterpay merchant agreement | Not confirmed on this page | Not confirmed on this page | Provider merchant terms |
| PayPal (Pay in 4) | Check PayPal seller protection and dispute terms | Not confirmed on this page | Not confirmed on this page | Provider merchant terms |
Because every provider runs its own process, the provider mix at your checkout decides which rules apply to your BNPL disputes. A consumer can also dispute a card-funded installment with their issuer, which follows card network timelines instead.
Many BNPL disputes start as friendly fraud: the shopper made the purchase but disputes it later. Partial refunds also cause mismatches, covered in our guide to BNPL partial refund disputes. For Sezzle, see Sezzle merchant disputes.
For card-side disputes, see our guide to chargeback management and the chargeback ratio. For wider context, see our chargeback statistics and trends. Chargeflow lists integration details for Klarna and Affirm.
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Regulation Snapshot
| Region | Status | Notes |
|---|---|---|
| United States | Mixed federal direction | The CFPB withdrew its 2024 interpretive rule in May 2025 and published its market report in December 2025; check the CFPB for current rule status. |
| United Kingdom | FCA regulation began 15 July 2026 | Deferred payment credit now needs affordability checks, clear pre-agreement information and missed-payment support, per the FCA. The rules do not cover agreements made before that date. |
| European Union | Revised Consumer Credit Directive (CCD II) | Member states apply the revised rules from November 2026; national implementation varies. |
Methods and Limits
- Figures were checked against the cited sources on 2026-10-29. Forecasts and market-research estimates are labeled and not independently verified.
- Federal Reserve shares apply to six providers in US issuance only.
- CFPB figures cover six lenders that held about 40% of the US point-of-sale financing market in 2023, so they are not the whole market.
- Survey figures (Federal Reserve SHED, LendingTree) are self-reported and use different questions.
- Provider figures follow each company's fiscal or calendar year as stated.
- User estimates may count users, accounts or borrowers differently and are not additive across sources. Digital wallet figures have the same problem; see Apple Pay vs Google Pay in 2026: Adoption, Features & Security.
BNPL Statistics FAQs
How big is the BNPL market?
It depends on the measure. Global BNPL GMV is estimated at about $560.1 billion for 2025 (market-research estimate). US BNPL credit issuance was an estimated $156.7 billion in 2025 (Federal Reserve). Provider revenue is a separate, much smaller series. Do not compare these as one market size.
What is the BNPL market share in 2026?
In the US, the Federal Reserve estimates Afterpay holds 34% of 2025 BNPL issuance, Affirm 26%, PayPal 17%, Klarna 15%, Zip 5% and Sezzle 2%. As a payment method, BNPL covered about 7.8% of US online holiday spend in 2025, based on Adobe data.
How many people use BNPL?
About 16% of US adults used BNPL in 2025 (Federal Reserve survey), and 47% of Americans say they have used it at least once (LendingTree). Globally, Juniper Research estimates about 380 million users in 2024 and forecasts about 670 million by 2028. Klarna alone reports 120 million active consumers.
What are BNPL default rates?
Low, but late payments are common. The CFPB found 1.83% of BNPL loans were charged off in 2023, down from 2.63% in 2022. Yet 47% of BNPL users told LendingTree they paid late in the past year.
Does BNPL increase average order value?
Provider data says it can. Affirm reports up to a 21% conversion lift on purchases of $250 or more, and merchant case studies report AOV gains of 20% to more than 30%. These are provider-published figures, so test on your own store.
Is BNPL always interest-free?
No. Many plans are short, four-payment splits with no interest, and the Federal Reserve estimates about 63% of 2025 US issuance carried 0% APR. The rest were installment loans that can carry interest, with one provider offering APRs up to 36% and terms up to five years. Check the terms of each product.
Which companies lead US BNPL?
For 2025 US issuance, the Federal Reserve estimates Afterpay at 34%, Affirm at 26%, PayPal at 17%, Klarna at 15%, Zip at 5% and Sezzle at 2%, among those six providers. This is not a global ranking.
Sources
- Federal Reserve, June 2026: BNPL beyond Pay in 4, product overview
- Federal Reserve, May 2026: Economic Well-Being of U.S. Households in 2025
- CFPB, Dec 2025: The Buy Now, Pay Later Market (full report PDF)
- LendingTree, 2026: BNPL loan statistics
- Adobe, Jan 2026: 2025 holiday shopping season, and Adobe Cyber Monday 2025
- Adobe, Sept 2026: 2026 holiday forecast
- Klarna Q2 2026 results and Klarna FY2025 results
- Affirm 10-K, FY2026, Affirm FY Q4 2026 earnings supplement and Affirm 10-K, FY2025
- PayPal Q4 2025 investor update
- Juniper Research: BNPL users forecast
- Fortune Business Insights: BNPL market report
- Stripe: Affirm payment method page (Affirm-provided conversion data)
- Affirm Business Hub: Managing disputes, Klarna disputes (Kustom help)
- FCA: buy now pay later
Disclaimer: this page compiles public information as of the check date and is not legal or financial advice. Statistics can be updated by their sources after publication.
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