Buy now, pay later users are no longer choosing one provider and staying loyal. They are building a payment toolkit, selecting different installment options for different purchases.
That shift defines “BNPL’s Multi-Provider Moment: Why Shoppers No Longer Pick Just One,” the latest edition of the PYMNTS Intelligence Pay Later Ecosystem Report. Based on 10 surveys of U.S. adults conducted between April 2025 and May 2026, the report finds that BNPL has become a flexible financial management tool for many consumers. Shoppers increasingly compare providers based on loan size, repayment period, interest rate, fees and where a plan can be used. The trend gives consumers more control, while creating new responsibilities for providers seeking to manage risk and maintain a clear view of borrowers’ obligations.
Three figures illustrate how quickly the market has changed:
- 74% of BNPL users had used at least two providers during the previous three months as of May 2026, up from 68% in April 2025.
- 49% of BNPL users relied on two or three providers, while another 25% used four or more.
- 45% of BNPL users chose Affirm, compared with 44% for Klarna, 44% for PayPal Pay Later and 42% for Afterpay.
Multi-provider use has remained in the low-to-mid 70% range since late 2025. That consistency suggests the behavior has become an established part of the market rather than a temporary response to a promotion or seasonal spending cycle.
The report does not ask consumers why they use several providers. Still, differences among the leading products offer a likely explanation. Affirm provides short-term plans and financing lasting as long as five years. Klarna offers Pay in 30, Pay in 4 and longer-term financing. PayPal combines Pay in 4 with monthly plans, while Afterpay provides short-term and extended financing with different limits and fee structures.
Consumers may therefore treat BNPL providers much as travelers treat a row of departure boards, checking several options before choosing the route that best fits the trip. A small online purchase may call for a four-payment plan, while a larger expense may require a longer term or higher spending limit.
That flexibility can benefit shoppers, but it can also complicate risk assessment. A provider may see the plan it approved without having a complete picture of the consumer’s installment commitments elsewhere. Multiple accounts may also create more openings for account takeover, synthetic identities or other forms of application fraud when companies rely on fragmented data.
The positive development is that a more competitive market gives providers a reason to improve underwriting, identity verification and account monitoring. Clearer disclosures and stronger data-sharing practices could also help consumers track payment schedules across platforms without reducing access to useful credit.
Competition among providers has tightened sharply. PayPal Pay Later’s usage share declined from 49% in April 2025 to 44% in May 2026. During the same period, Klarna rose from 33% to 44%, Afterpay increased from 33% to 42%, and Affirm climbed from 36% to 45%. Smaller provider Sezzle recorded the largest proportional gain, rising from roughly 12% to 17%.
No company now holds a commanding lead. That outcome points toward a market shaped by consumer choice rather than provider dominance. The next phase will require BNPL companies to compete not only on repayment terms and convenience, but also on responsible lending, transparent servicing and security.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
