Fed: 16 Percent of Adults Used BNPL Loans in 2025

The Federal Reserve reported that 16 percent of adults used Buy Now, Pay Later ("BNPL") loans in 2025, with usage concentrated among consumers facing liquidity constraints.

Drawing on the 2025 Survey of Household Economics and Decisionmaking, the Federal Reserve Board's Consumer & Community Context report showed that BNPL usage has risen steadily since 2021, with women consistently more likely than men to use it. In 2025, usage was also higher among younger adults and adults without a bachelor's degree. Fed researchers found that usage was highest among those with the fewest financial resources: 31 percent of adults who could cover only a sub-$100 emergency expense from savings used BNPL, versus 8 percent of those able to cover $2,000 or more.

Consumers used BNPL most often for clothing or accessories (49 percent), followed by electronics (32 percent) and furniture or appliances (26 percent). One in five BNPL users bought groceries or food delivery. Lower-income users were more likely to finance groceries and clothing, with higher-income users more likely to finance travel. Most users cited convenience and the ability to spread out payments, rather than lack of other payment options, as their main reason for using the product.

The researchers also identified repayment risks for financially constrained users: (i) 11 percent of BNPL users had an automated installment payment trigger an overdraft or non-sufficient-funds fee in the prior year, rising to 18 percent among users with the least savings; (ii) 26 percent paid late at least once; and (iii) 17 percent incurred extra charges for late payments. The analysts concluded that consumers using BNPL for essentials like groceries or medical procedures were more likely to struggle with repayment and incur additional fees.