With the Trump administration focused on reducing costs across federal agencies, the Consumer Financial Protection Bureau (CFPB) has faced a large-scale wind down of operations throughout early February 2025. Established during the Obama administration as part of broader financial reforms, the CFPB played a central role in promoting industry-wide transparency and crafting policy recommendations that guided financial firms in how they offer products and services. Throughout its tenure, the Bureau’s broader goal was to protect consumers and ensure fair access to financial resources.
As CFPB operations slow, regulations on financial firms and loan offerings are also likely to ease, potentially paving the way for more credit-oriented products and fintech solutions aimed at everyday consumers. One such offering—Buy Now, Pay Later (BNPL)—lets shoppers split purchases into multiple, often interest-free payments, though certain plans include fixed fees.
In a recent study, Numerator surveyed 2,572 BNPL users and examined their purchase data to build a picture of BNPL usage, consumer concerns, and the possible implications of a larger BNPL market amid diminished government involvement.
What is Buy Now, Pay Later, who offers it, and what is it used for?
Although BNPL has gained traction in the modern fintech landscape, the underlying concept has a history in traditional layaway programs. Since the 1930s, layaway has allowed retailers to hold items while consumers repay them over time, usually for a fixed fee. Credit cards later addressed many short-term cash flow concerns. BNPL differs from other payment methods by letting people receive and use their products immediately, then repay the balance in installments—often without interest.
BNPL has seen strong adoption among consumers. According to Numerator’s survey, half of Americans have used these services, commonly through fintech institutions such as PayPal (43%), Affirm (37%), Klarna (32%), and Afterpay (30%), or through major banks (27%) like Chase or Citi. Over the past year, top categories financed by BNPL included apparel (42%), electronics and gadgets (32%), furniture and home decor (26%) and home appliances (22%).
Generational differences play a role as well: Gen Z and Millennials are 50% more likely than average to use BNPL for experiences—think concerts and festivals—and they are also more inclined to finance personal travel and exercise equipment. Numerator’s findings suggest that 39% of BNPL users leverage these services for holiday purchases, and 36% do so around large retail sales events. Purchasing data further shows BNPL users contribute a higher share of their general merchandise purchases during holidays and Amazon Prime Big Deal Days. For industry leaders, timing BNPL offerings with these retail peaks may prove most effective.
What are the demographics of Buy Now, Pay Later users?
Numerator’s data indicates that BNPL users tend to be Gen Z or Millennial multi-cultural, urban families earning under $60,000 per year. Factoring in cost of living, household size, and regional differences, these users are 42% more likely to fall into the lower third of purchasing power. They also make 28% more grocery trips using SNAP benefits when compared with non-users.
Managing cash flow (36%) is the chief reason people turn to BNPL, followed by making larger purchases more affordable (28%). Nearly half of Americans (48%) consider BNPL for purchases exceeding $200, while existing BNPL users are 44% more likely than non-users to consider it for items over $100.
Additional survey responses revealed BNPL users’ unique shopping habits. They are 82% more likely to enjoy online shopping, 49% more likely to research products on the internet, and 42% more likely to place online orders weekly. Based on Numerator’s verified receipt capture, Numerator identified that BNPL users have an affinity for footwear retailers. In fact, BNPL users are 51% more likely than non-users to shop at Nike brick-and-mortar and ecommerce stores. They also favor high-end department stores such as Nordstrom, Saks Fifth Avenue, and Bloomingdale’s at higher-than-average rates (16% and 12% more likely, respectively). At the same time, BNPL users are 61% more likely to shop on Shein– a direct from manufacturer to consumer fast-fashion store similar to Temu’s business model.
Brand preferences also differ for BNPL users. They are 44% more likely to opt for Sony PlayStation and 23% more likely to choose Apple products. In the small and large home appliance categories, BNPL users exhibit an 11% greater likelihood of choosing private-label brands.
Will Buy Now, Pay Later continue growing?
Several factors point to potential BNPL expansion. With the CFPB de-emphasized, some financial firms may have more latitude to develop more lending offerings such as BNPL products, while retailers could be inclined to implement them without as much regulatory scrutiny. Consumers appear receptive: 72% of Americans say they plan to use BNPL in the coming year, especially for furniture and home decor, appliances, and personal travel.
Generationally, BNPL also shows staying power. Eighty-two percent of Gen Z and 77% of Millennials express interest in using these services, reinforcing the notion that BNPL will remain a fixture in the marketplace for younger shoppers.
Why are some consumers hesitant to use Buy Now, Pay Later?
Skeptics cite several hurdles that the retail and financial market will need to address. Forty-one percent worry about interest or late fees, 32% are concerned about overspending or exceeding their budget, and 13% fear losing track of payment schedules. Among current BNPL users, anxieties over staying within a budget surpass even the fear of extra fees.
While a slight majority (54%) of Americans deems BNPL somewhat risky, fewer than 1 in 5 (16%) consider it very risky, and 30% do not view it as risky at all. For businesses aiming to foster trust in BNPL, offering on-time payment guarantees, flexible structures, and clear disclosures could help: 35% of Americans say such assurances would make them more likely to use BNPL.
What should brands and retailers consider?
Businesses seeking to meet consumer needs amid rising costs may find BNPL an appealing option. Yet several considerations remain critical.
First, there is the matter of brand perception. Over half (51%) of Americans believe BNPL encourages debt accumulation; among Gen Z, that figure rises to 57%. Even among BNPL users, 38% say it can prompt overborrowing. Companies should assess whether the advantages of BNPL—such as enabling more flexible purchasing—might be overshadowed by potential concerns about debt.
Second, leaders should weigh the risk of nonpayment. Nearly a quarter (24%) of BNPL users often or always feel stressed about upcoming installments, and 14% have missed a payment or faced unexpected fees. These figures vary by provider, with users of Splitit, Zip, and Sezzle reporting higher rates of missed payments or fees. These trends are also supported by the CPFB, noting that BNPL are more likely to have a subprime or deep subprime FICO credit score. Retailers and brands would do well to identify which BNPL services their customers prefer and consider default risks before implementing a new program.
Finally, the shifting stance of government oversight cannot be overlooked. Although the Trump administration will likely loosen its grip on these services, 50% of Americans still support stronger regulations—be that clearer disclosures, capping fees, or stricter credit score checks. Even among BNPL users, that number rises to 53%. As consumer sentiment and regulatory signals evolve, industry stakeholders may need to adapt swiftly, balancing consumer demand for flexible payment options with the broader financial implications of those choices.
Using consumer data to inform your strategy.
As the landscape for Buy Now, Pay Later evolves under the latest presidential administration, businesses that quickly adapt to shifts in regulation and consumer behavior will be best positioned to drive sustainable growth. Numerator’s Verified Voices offering can connect to in-depth panel analyses and deliver insights into the attitudes, motivations, and real-world purchase patterns of BNPL users—equipping you with data-driven guidance to navigate this changing market.
Partner with Numerator to create strategies rooted in consumer-sourced intelligence, inform your BNPL implementation, and manage potential risks. Reach out today to learn how our team can help you make informed decisions that keep pace with your customers’ preferences in a rapidly evolving regulatory environment.
