The Buy Now, Pay Later (BNPL) industry is witnessing a significant increase in user spending, even as user growth slows. In 2024, the average spend per user surpassed $1,000 for the first time and is projected to reach $1,380.65 by 2028. This growth is fueled by BNPL providers making loans more accessible, with approval rates rising from 56% in 2019 to 79% in 2022, according to a Consumer Financial Protection Bureau report. Notably, delinquencies remain low, with Affirm reporting a serious delinquency rate of just 0.7% compared to 7.2% for credit cards. The integration of BNPL services with mobile wallets like Apple Pay and Google Wallet is expected to enhance in-store transaction volumes by simplifying the payment process. However, BNPL fintechs face competition from credit card-linked installment programs, which could impact overall spend per user. Despite these challenges, the structural differences in repayment methods suggest that BNPL will continue to thrive.
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