Buy Now Pay Later Usage Surges as New Products Proliferate, JD Power Finds

WHY THIS MATTERS

The continued growth of Buy Now Pay Later (BNPL) services highlights how installment-based payments are becoming a mainstream tool for everyday spending in the United States. With 37% of consumers using BNPL in the past 90 days, the model is evolving beyond occasional large purchases into a routine budgeting mechanism for many households. This shift reflects broader consumer demand for flexible payment options that help manage cash flow without relying solely on traditional credit products.

Buy Now Pay Later (BNPL) adoption continues to grow rapidly, with 37% of consumers in the United States making a purchase using this method in the past 90 days, a 5-percentage-point increase in just one year. According to the JD Power 2026 U.S. Buy Now Pay Later Satisfaction Study,SM released today, as BNPL use matures and providers continue to launch new products, customers are increasingly using it to manage their day-to-day spending.

“The 2026 study shows sustained and rapid growth of BNPL, driven largely by increased use of services offered by FinTech providers. When it comes to overall satisfaction, however, the traditional financial institutions are delivering a much more positive user experience,” said Sean Gelles, senior director of banking and payments at JD Power. “This signals an enormous opportunity for traditional financial institutions. Customers are looking for BNPL solutions from the brands they already know and trust.” 

Following are some of the key findings of the 2026 study:

• Customer satisfaction rises sharply for bank brands: Though bank-branded BNPL services still represent just a fraction of total BNPL spending, the average overall customer satisfaction score for bank-based BNPL services is 704 (on a 1,000-point scale), up 59 points from last year’s study. By contrast, customer satisfaction with FinTech BNPL brands is 603, which is down 17 points from last year.
• Checkout/point-of-sale opportunity for bank brands: Among customers using a BNPL service associated with their credit card, 52% make the decision to use a fixed payment plan after the purchase has already been made while 48% make the decision at the time of purchase, indicating an opportunity for bank brands that can build installment plans into the checkout/point-of-sale experience.
• Most customers pay off BNPL in four installments, using debit cards: The “pay in four” installment schedule is by far the most common BNPL format used, with 82% of FinTech customers and 73% of bank customers paying off their purchases in four equal installments. Debit cards are the most widely used form of payment, with 64% of FinTech customers linking their BNPL payments to a debit card.

Study Rankings

Chase ranks highest in BNPL satisfaction, with a score of 706.  Plan It by American Express (703) ranks second and Citi Flex Pay (687) ranks third.

The U.S. Buy Now Pay Later Satisfaction Study, now in its fourth year, measures customer satisfaction with Buy Now Pay Later services in the United States. The 2026 study captures the responses of 3,909 customers and was fielded from January 2025 through January 2026.

FF NEWS TAKE
BNPL is moving from fintech disruption to mainstream financial infrastructure.

As the market matures, traditional banks appear well positioned to capture a larger share by embedding installment payment options directly into credit cards and checkout experiences. If banks can combine the flexibility of BNPL with the trust of established financial institutions, they could reshape the competitive landscape of consumer lending in the years ahead.