Payment Preference or Necessity: Who Uses BNPL and Why

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Analysis of BNPL usage reveals that convenience drives some, while necessity affects others, indicating financial vulnerability among users.

BNPL usage shows a split between convenience and necessity, particularly affecting vulnerable consumers.
57% of BNPL users engage with it out of necessity, highlighting financial pressures in lower credit score groups.
Survey data from the Federal Reserve shows that liquidity and credit-constrained individuals significantly rely on BNPL services.
Findings underscore risks associated with BNPL use, suggesting a potential for overextension among financially vulnerable users.

Larrimore et al. (2025) studied this question.

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Analysis of BNPL usage reveals that convenience drives some, while necessity affects others, indicating financial vulnerability among users.