Additional Note: Buy now, pay later (BNPL) services are defined as installment loan solutions that allow consumers to purchase and finance a product or service and pay in scheduled installments. These services are also known as digital installments, installment lending, and point-of-sale financing. Loan options include no-interest loans, as well as interest-based loans of a predetermined duration. BNPL loans can be accessed at the point-of-sale (online or in-person), usually via a BNPL loan provider's branded app, via a merchant’s website or app, or via proximity mobile payment apps like Apple Pay and Google Pay. Examples include Affirm, Afterpay, Klarna, Zip, and PayPal’s BNPL service. Some short-term, no-interest loans can be accessed only at retailers. Examples include Bread Pay and SetPay. Services that provide a revolving line of credit, retailer-branded financing options, closed-loop marketplace financing services, and card-linked installment services are excluded.
Methodology: Estimates are based on the analysis of survey and web traffic data from research firms, historical consumer adoption and buying trends, payment adoption trends, reported company data, interviews, demographic and socioeconomic factors, and macroeconomic conditions.