Card Installment Use Jumps 13 Percentage Points as BNPL Holds Steady
Credit card installment plans are turning the biggest promise of buy now, pay later (BNPL) into an advantage for the card industry. A PYMNTS Intelligence report, “The Pay Later Data Shift: Credit Card Installments Take the Lead,” finds consumers used card installment plans at more than twice the rate of BNPL in March 2026. Card […] The post Card Installment Use Jumps 13 Percentage Points as BNPL…
A new PYMNTS Intelligence report reveals that card installment plans have surpassed buy now, pay later (BNPL) usage among consumers, marking a significant shift in the financial services landscape. Card installment usage surged to 36% in March 2026, up from 23% in April 2025, while BNPL remained steady at 15%, its starting point.
This 13 percentage point increase highlights how card issuers can leverage existing customer relationships to promote installment financing, which remains unavailable through separate BNPL providers.
Younger demographics, particularly Gen Z, showed a strong preference for card-based installment plans. Gen Z usage of card installment plans rose to 47% in March 2026 from 31% in April 2025, while BNPL usage among the same age group increased slightly to 23% from 21%. Millennials and bridge millennials also demonstrated a higher inclination towards card installments, using them at roughly 1.8 to 2.5 times the rate of BNPL.
Financially more stable consumers, those earning at least $150,000 annually, were more likely to adopt BNPL, using it at about twice the rate of those earning less than $50,000, with respective shares of 20% and 10%. This suggests that BNPL appeals to a financially savvy clientele, rather than being a tool exclusively for budgeting and cash flow management.
The report underscores that BNPL is evolving into an integral part of broader financial relationships, with BNPL providers maintaining a significant market presence while card issuers bring valuable reach, account histories, and established merchant connections. This combination allows banks, networks, and FinTechs to enhance customer choice, visibility, and control.
The study's data, compiled from surveys of approximately 2,500 U.S. adults conducted monthly from September 2025 through March 2026, underscores the growing role of installment financing within the financial ecosystem, presenting opportunities for businesses to capitalize on changing consumer preferences.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
