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The buy now, pay later (BNPL) model has revolutionized shopping habits across the United States. With inflation driving consumers toward flexible payment options and merchants looking to reduce cart abandonment, buy now pay later companies have quickly become essential in e-commerce checkout systems.
In this statistic, we’ll explore how BNPL works, the top 10 companies leading the U.S. market, and what both consumers and merchants should know before choosing a provider.
Buy now pay later companies offer installment-based financing that enables customers to split their purchases into smaller, scheduled payments. These payments are typically interest-free if made on time. Merchants receive full payment upfront, while the BNPL provider assumes the risk of collecting future installments.
Recent reports show that the U.S. BNPL market is expected to exceed $120 billion in transaction volume by 2025, growing steadily toward $180+ billion by 2030. This surge reflects a shift toward financial convenience — allowing shoppers to buy instantly and spread payments over time, often interest-free.
For shoppers, the benefits are clear — fast approvals, minimal paperwork, and financial flexibility. For merchants, BNPL reduces cart abandonment and increases the average order value. Studies show that shoppers using BNPL spend up to 85% more per transaction than those using traditional payment methods.
BNPL is particularly popular among millennials and Gen Z consumers, especially in categories like fashion, electronics, and travel. However, the model also raises regulatory questions about consumer debt and transparency — making it essential to partner with trustworthy, compliant providers.
The U.S. has become one of the largest BNPL markets globally, accounting for a significant share of worldwide transactions. Around 91 million Americans are expected to use BNPL services in 2025, with a year-over-year adoption rate increase of nearly 6%.
Several trends define the current BNPL landscape:
In short, BNPL is no longer just a payment trend — it’s an integral part of the modern shopping experience.
The U.S. BNPL sector is dominated by a handful of major players that differ in features, fees, and market focus. Here’s a detailed look at the top buy now pay later companies shaping the future of payments.
As one of the most trusted names in digital payments, PayPal holds the largest share of the BNPL market in the U.S. Its Pay in 4 service allows consumers to divide purchases into four interest-free installments over six weeks.
It’s easy for merchants to adopt since PayPal is already integrated into millions of e-commerce stores. For shoppers, it offers unmatched convenience and brand trust — ideal for smaller purchases and impulse buys.
Afterpay helped pioneer the BNPL movement globally and remains a top choice in fashion and lifestyle sectors. The platform lets consumers split payments into four equal installments without interest, provided payments are made on time.
Afterpay is especially popular among Gen Z shoppers and smaller online retailers due to its simple setup and focus on accessible consumer financing.
Known for its transparency, Affirm stands out by offering both short-term installment plans and longer financing options. Unlike most providers, it clearly displays the total cost upfront — no hidden fees or compounding interest.
Affirm is often used for higher-value purchases like electronics, furniture, or travel bookings. It’s also widely integrated into e-commerce platforms and major retailers like Walmart and Peloton.
Swedish fintech giant Klarna offers flexible payment options including “Pay in 4,” “Pay later,” and extended financing. Its mobile app doubles as a shopping platform, allowing users to browse deals and manage their payments from one interface.
With a strong focus on user experience and brand partnerships, Klarna caters to fashion, beauty, and lifestyle brands looking to attract younger, tech-savvy audiences.
Zip allows shoppers to pay for purchases in four equal installments over six weeks using a virtual card that can be used at any merchant that accepts Visa.
It’s a great option for smaller online retailers since it doesn’t require a direct integration. For consumers, Zip offers flexibility to use BNPL even when a store doesn’t list it as a checkout option.
Sezzle promotes financial responsibility and flexibility. It allows users to reschedule payments without penalties and encourages smarter budgeting habits.
Sezzle is popular among ethical and eco-friendly brands as well as budget-focused shoppers who appreciate its transparent policies. Its commitment to consumer empowerment makes it a standout among BNPL competitors.
Focused on travel and leisure, Uplift enables customers to pay for vacations, cruises, and experiences over time. Instead of the standard six-week cycle, it offers extended terms — often up to 24 months — making it ideal for high-value transactions.
For travel businesses, Uplift can dramatically increase bookings by lowering upfront costs for travelers.
Unlike traditional BNPL platforms, Splitit lets customers use their existing credit cards to make installment payments without opening a new line of credit. Since it doesn’t rely on loans or interest, it’s a low-risk option for both merchants and consumers.
This approach also eliminates credit checks and preserves card rewards — appealing to financially conscious shoppers.
Bread Pay offers customizable installment plans tailored to different merchant categories, from retail and electronics to home goods. It’s known for flexible terms, transparent pricing, and strong integration tools for online stores.
For larger purchases, Bread Pay’s longer-term financing and stable underwriting make it attractive for both businesses and consumers seeking clarity in repayment.
Wisetack focuses on industries outside of retail — like healthcare, home services, and automotive repairs. It provides quick, paperless financing directly at the point of service, allowing customers to split essential but high-cost bills into manageable payments.
This niche focus gives Wisetack a unique advantage: it empowers small businesses to offer financing typically reserved for larger enterprises.
Choosing the right BNPL company depends on your audience, industry, and product value. Here’s what to consider:
By aligning your choice with both customer preferences and business goals, you’ll maximize BNPL’s value while minimizing risk.
While buy now, pay later options have opened new possibilities for consumers and merchants alike, they come with both rewards and responsibilities. Understanding the key benefits and potential risks helps businesses integrate BNPL strategically — and empowers shoppers to use it wisely without falling into financial pitfalls.
A balanced approach is key — BNPL can be a growth driver when used responsibly and transparently.
Buy now pay later companies have transformed U.S. retail by bridging the gap between instant gratification and financial flexibility. For consumers, BNPL provides freedom and accessibility; for merchants, it unlocks higher conversions and new audiences.
Whether you’re shopping online or integrating BNPL into your store, understanding each provider’s strengths ensures you make the right choice. From PayPal’s trusted ecosystem to Affirm’s transparent financing and Sezzle’s ethical flexibility, there’s a BNPL model for every buyer and seller.
