U.S. Buy Now Pay Later (BNPL) Services Market Report 2026-2031 Wallet And POS Integration Expand Reach, While Regulation May Drive Consolidation
Dublin, Sept. 01, 2026 (GLOBE NEWSWIRE) -- The "US Buy Now Pay Later Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The United States buy now, pay later (BNPL) services market is positioned for sustained expansion as consumers increasingly seek flexible, short-term payment options across retail, healthcare, travel, and other high-value purchasing categories. Valued at USD 170.32 billion in 2025, the market is projected to grow from USD 198.21 billion in 2026 to USD 423.08 billion by 2031, representing a compound annual growth rate of 16.39% during the 2026-2031 forecast period.
Millennial and Generation Z Demand Accelerates BNPL Adoption
Growing demand among Millennials and Generation Z remains a key driver of the U.S. buy now, pay later services market. Nearly 46% of Generation Z consumers used a BNPL option in 2025, almost double the participation recorded in 2023. Predictable repayment schedules and interest-free installment plans are especially attractive to younger consumers seeking alternatives to revolving credit balances.
The quality of the payment experience is also becoming an important competitive factor for merchants. Approximately 81% of Generation Z customers indicate that they will abandon brands offering poor payment experiences. Payment flexibility is increasingly influencing consumer loyalty and commercial relationships, with the potential to extend into business-to-business transactions. As the purchasing power of younger generations rises, their preference for installment-based payments is expected to shape long-term payment behavior.
Healthcare and Travel Create New Growth Opportunities
BNPL providers are expanding beyond traditional retail into healthcare, wellness, travel, and leisure. Rising out-of-pocket medical costs have made healthcare one of the fastest-growing applications for installment financing. Sunbit, for example, works with approximately 7,300 healthcare providers and supports treatments valued from USD 60 to USD 10,000.
Travel is also generating strong momentum. BNPL booking volume increased 289% in 2024, while travelers using installment options spent approximately 70% more per trip. This trend creates revenue opportunities for airlines, hotels, and online travel agencies while helping BNPL platforms diversify beyond discretionary retail spending. Expansion into essential and high-ticket purchases may also reduce exposure to seasonal retail cycles.
Online Transactions Lead as In-Store BNPL Gains Momentum
Online commerce accounted for 71.35% of U.S. BNPL market revenue in 2025. However, point-of-sale and in-store adoption is forecast to advance at a 19.15% CAGR through 2031 as merchants bring digital payment flexibility into physical locations.
Unified checkout experiences are helping retailers improve conversion rates, particularly for expensive purchases. Omnichannel BNPL solutions allow shoppers to pre-qualify through mobile applications before completing transactions at staffed registers or self-checkout stations. This approach is gaining traction in consumer electronics, furniture, appliances, and home improvement, where financing decisions frequently occur alongside physical product evaluation.
Blended shopping journeys also support adoption among customers who research or reserve products online but prefer to complete purchases in stores. These capabilities can help BNPL providers reach older demographics that favor brick-and-mortar shopping while still valuing flexible payment choices.
Fashion Retains Scale While Healthcare Records Faster Growth
Fashion and apparel represented 27.85% of the U.S. BNPL services market in 2025. Healthcare is expected to outpace other end-use categories with a projected CAGR of 19.88% through 2031, supported by higher medical deductibles and demand for elective procedures. Travel is another notable growth category, as installment availability can increase booking values and make higher-cost trips more accessible.
Providers are also extending BNPL services into home improvement, media, entertainment, streaming, and gaming. Home improvement retailers are introducing installments for appliance replacements and renovation projects, while digital entertainment companies are exploring flexible payments to support customer retention. This diversification positions BNPL platforms within industries that have recurring or structural financing requirements.
Regulatory Scrutiny and Credit Performance Remain Key Challenges
Regulatory developments are expected to influence the operating environment. In May 2024, the Consumer Financial Protection Bureau classified certain digital BNPL loans as credit cards under Regulation Z, requiring affected providers to manage disputes, refunds, and billing statements in a manner similar to card issuers. Although the agency stated in April 2025 that enforcement would not be prioritized while the rule was under review, providers continue to face potential compliance investments and state-level measures, including New York's proposed Buy Now Pay Later Act.
Additional market considerations include rising delinquency rates, which could pressure provider profitability, and higher compliance costs that may encourage industry consolidation. At the same time, deeper integration with digital wallets and point-of-sale systems, combined with partnerships involving major card networks, is expected to strengthen merchant adoption and expand the distribution of BNPL services across the United States.
Key Topics Covered
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Millennial & Gen Z Preference for Interest-Free Short-Term Credit
4.2.2 Expansion into Non-Retail Verticals such as Healthcare & Travel
4.2.3 Deep Integration with Digital Wallets and POS Systems Boosting Merchant Adoption
4.2.4 Strategic Partnerships with Major Card Networks Enhancing Distribution Reach
4.2.5 Rising Demand from Sub-prime and Near-prime Consumers Excluded from Traditional Credit Cards Accelerating BNPL Penetration
4.3 Market Restraints
4.3.1 Escalating CFPB & State-Level Regulatory Scrutiny on Fee Structures
4.3.2 Rising Delinquency Rates Impacting Provider Profitability
4.3.3 Intensifying Competition from Traditional Card Issuers' Instalment Products
4.3.4 Shrinking Merchant Service Fees Are Squeezing BNPL Providers' Profit Margins
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Competitive Rivalry
5 Market Size & Growth Forecasts (Value)
5.1 By Channel
5.1.1 Online
5.1.2 Point-of-Sale (In-store)
5.2 By End-Use Industry
5.2.1 Consumer Electronics
5.2.2 Fashion & Apparel
5.2.3 Healthcare & Wellness
5.2.4 Home Improvement
5.2.5 Travel & Leisure
5.2.6 Media & Entertainment
5.2.7 Other End-Use Industries
5.3 By Age Group
5.3.1 Generation Z (18-28 Years)
5.3.2 Millennials (29-44 Years)
5.3.3 Generation X (45-60 Years)
5.3.4 Baby Boomers (61-79 Years)
5.3.5 Silent Generation (80 Years and Above)
5.4 By Provider
5.4.1 Fintechs
5.4.2 Banks
5.4.3 Others
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
6.4.1 Affirm Holdings Inc.
6.4.2 Klarna Bank AB
6.4.3 Afterpay Ltd (Block Inc.)
6.4.4 PayPal Holdings Inc.
6.4.5 Zip Co Ltd (Quadpay)
6.4.6 Sezzle Inc.
6.4.7 Wisetack Inc.
6.4.8 Splitit Payments Ltd
6.4.9 Bread Financial Holdings Inc. (Bread Pay)
6.4.10 Uplift Inc.
6.4.11 Katapult Holdings Inc.
6.4.12 Sunbit Inc.
6.4.13 ChargeAfter Inc.
6.4.14 Mastercard Inc. (Mastercard Installments)
6.4.15 Visa Inc. (Visa Installments)
6.4.16 American Express Co. (Plan It)
6.4.17 JPMorgan Chase & Co. (My Chase Plan)
6.4.18 Synchrony Financial (SetPay)
6.4.19 Citi (Flex Pay)
6.4.20 Zilch USA Inc.
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
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