Fed estimates BNPL originations rose to nearly $157 billion in 2025; surveys show more users paying late

According to CNBC, buy now, pay later (BNPL) providers originated nearly $157 billion in consumer credit products in 2025, up from nearly $116 billion in 2024, based on Federal Reserve estimates. A LendingTree survey found 44% of Americans expect to apply for a BNPL loan in the next six months, including 13% who anticipate taking out three or more, while a separate March LendingTree poll showed 47% of users paid late on a BNPL loan in the past year, up from 34% in 2024. The Federal Reserve Bank of New York said U.S. credit card debt hit $1.25 trillion in the first quarter, up 5.9% from a year earlier. LendingTree’s March survey found 29% of BNPL users used the loans for groceries, up from 14% in 2024, while 18% used them for car repairs or maintenance and 13% for rent; a Protect Borrowers survey found 42% of BNPL users used the loans for medical or dental care and 39% for utility bills. Protect Borrowers reported that in 2026, interest-bearing installment loans accounted for over 37% of annual BNPL loan issuance, nearly double the share in 2021, and said late fees can run $7 to $8 per payment while interest plus financing fees can reach up to 36%.