Fintech growth, stronger bank satisfaction boost BNPL adoption

Buy now, pay later (BNPL) usage in the United States continues to climb as consumers increasingly use installment options to manage everyday purchases, according to the 2026 U.S. Buy Now Pay Later Satisfaction Study released by J.D. Power.

The study found that 37 percent of U.S. consumers used BNPL for a purchase within the past 90 days, up five percentage points from a year earlier. Among consumers under age 40, adoption is even higher, with half reporting recent BNPL use.

The growth reflects the continued expansion of BNPL products and services, particularly from fintech providers that have helped popularize installment payments at checkout. However, while fintech firms are driving adoption, traditional financial institutions are outperforming them in customer satisfaction.

An opportunity for FIs

According to the study, bank-branded BNPL services received an average customer satisfaction score of 704 on a 1,000-point scale, a 59-point increase from last year. Fintech providers scored significantly lower, with an average satisfaction rating of 603, down 17 points from the previous study.

“The 2026 study shows sustained and rapid growth of BNPL, driven largely by increased use of services offered by fintech providers,” said Sean Gelles, senior director of banking and payments at J.D. Power. “When it comes to overall satisfaction, however, traditional financial institutions are delivering a much more positive user experience.”

The findings suggest banks have an opportunity to capture greater BNPL market share, particularly by integrating installment options more directly into checkout and POS experiences. Among consumers in the study using BNPL tied to their credit cards, 52 percent decide to convert purchases into fixed-payment plans after reviewing their credit card bill, while 48 percent make the decision at checkout.

Pay-in-four the top way to repay

Installment structure also appears consistent across providers. The “pay in four” model remains dominant, with 82 percent of fintech users and 73 percent of bank users repaying purchases in four equal installments. Debit cards are the most common funding source, with 64 percent of fintech customers linking their BNPL payments to debit accounts.

Among providers, Chase ranked highest in customer satisfaction with a score of 706, followed by Plan It by American Express (703) and Citi Flex Pay (687).

The study surveyed 3,909 BNPL customers between January 2025 and January 2026 and marks the fourth year J.D. Power has evaluated the installment payments segment.

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