Buy Now Pay Later is on the rise. Find out how many Americans have used BNPL this year - and how many have been late on a payment. 

Answer: 15% 

Note: Of people aged 18-29, 19% used BNPL in the last year

Questions:

• What is your experience with Buy Now Pay Later?
• Why do you think younger people are more likely to use Buy Now Pay Later?
• How does Buy Now Pay Later compare to other payment or credit options?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Federal Reserve): 

"Fifteen percent of people used BNPL in the prior 12 months, up from 14 percent in 2023 and 10 percent in 2021, when the survey first asked about BNPL (figure 29).

The top two reasons for using BNPL were wanting to spread out payments (87 percent) and convenience (82 percent) (table 33). Over one-half (58 percent) of those who used BNPL—and an even higher 72 percent of those with income less than $50,000 who used BNPL—said they used BNPL because it was the only way they could afford the purchase.

Use of BNPL was more common among low- and middle-income adults, Black and Hispanic adults, and women (table 34). Differences by race and ethnicity were large, with Black and Hispanic adults about twice as likely to use BNPL as White or Asian adults. Additionally, sizeable differences remain even after controlling for other factors, such as income and age."

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.

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