Split the Bill, Run the Budget: How BNPL Is Rewriting Consumer Spending

Credit cards are the workhorse of the Pay Later ecosystem, but buy now, pay later and credit card installment plans are gaining ground, moving from occasional financing tools to everyday money management tools. This PYMNTS Intelligence Data Book shows that growth in these payment options is concentrated among specific demographics—especially bridge millennials—who are increasingly relying on them to manage payments and affordability. But a trade-off is emerging: Fees are increasingly common, and keeping track of multiple payment plans is becoming difficult for a meaningful share of users.

BNPL on the Rise

Bridge Boost

Age Divide

BNPL remains heavily skewed toward younger consumers. In December, 25% of bridge millennials and 25% of millennials used BNPL, compared with 2% of baby boomers and seniors. The gap is also visible in credit card installment plans, where younger groups sit far above older cohorts.

BNPL Fees Persist

BNPL is not fee-free for many users. In the last three months, 31% of BNPL users paid interest charges and 28% paid subscription fees. Consumers under financial pressure are not the only ones paying interest: 36% of those who do not live paycheck to paycheck did so, compared with 24% of those living paycheck to paycheck and struggling to pay bills.

Tracking the BNPL Burden

Installment plans are harder to manage than a single credit card charge. In December, 38% of store-card installment plan users said it was difficult to keep track of when their payment was due, and 35% said the same for credit card installment plans—versus 20% for one-time credit card purchases. The challenge rises sharply for Gen Z and for consumers who live paycheck to paycheck and struggle to pay bills.

BNPL Payment Blur

BNPL users often lose track of what’s due and when—especially when they use the payment option for recurring needs. In December, 23% of BNPL users said they were unsure when their next payment was due, and 27% were unsure how many payments they had left. Among consumers who use BNPL only for monthly expenses and essentials, uncertainty about the next due date rose to 27%. Uncertainty about the number of remaining payments for this group rose to 34%. These shares are well above those using BNPL only for occasional, discretionary purchases. Fifteen percent were unsure of their next due date, and 20% were unsure how many payments they had left.

Methodology

This Data Book is based on findings from the February 2026 edition of the Pay Later Ecosystem Report, a PYMNTS Intelligence exclusive. The analysis draws on a nationally representative survey of U.S. adult consumers conducted in December 2025. Respondents were asked about their use of buy now, pay later (BNPL) products and credit card installment plans, their fee experiences, their payment tracking behavior and their financial lifestyle persona, including whether they live paycheck to paycheck.

The survey results are weighted to reflect the U.S. adult population by key demographic characteristics. Paycheck-to-paycheck segments are defined based on respondents’ self-reported ability to pay monthly bills.

^{1. PYMNTS Intelligence uses the following approximate birth dates and approximate age ranges in 2026 for generational cohorts: baby boomers: born in 1964 or earlier and now aged 62 or older; Generation X: born between 1965 and 1980 and now aged 46–61; millennials: born between 1981 and 1996 and now aged 30–45; bridge millennials: born between 1978 and 1988 and now aged 38–48; zillennials: born between 1991 and 1999 and now aged 26–35; and Generation Z: born in 1997 or later and now aged 29 or younger.↩}