43% of shoppers abandon purchases without BNPL, showing that payment flexibility can directly influence conversion rates, average order value, and whether shoppers complete a purchase or choose a cheaper alternative instead.
Consumer financing has moved beyond the checkout page and into the product discovery process. 43% of shoppers abandon purchases without BNPL, highlighting how payment options can directly influence buying decisions before shoppers reach the cart.
The research points to measurable gains for merchants that surface BNPL earlier, including larger order values and higher sales. It also shows that reducing friction during the approval process remains just as important as offering the payment option itself.
Research Shows Earlier Buy Now Pay Later Option Increases Sales
According to Shopifreaks, new research suggests that presenting a Buy Now Pay Later option earlier in the shopping journey can increase sales and encourage larger purchases. Merchants that placed Pay Later messaging and buttons on product and category pages recorded a 4.4% increase in overall sales compared to later placement.
The research found that shoppers consider BNPL while comparing products instead of waiting until checkout to decide how they will pay. It also reported that 81% of consumers spend more when using these financing options, while 42% choose a cheaper product when the option is unavailable.
The report highlighted several additional findings that help explain changing shopping behavior.
- Merchants saw a 4.4% lift in overall sales when Pay Later appeared earlier in the buying journey.
- Forty-three percent of shoppers abandoned a purchase when BNPL was unavailable.
- Forty-two percent selected a lower-priced alternative instead.
- Seventy-four percent of PayPal Pay Later purchases came from repeat buyers.
- Seventy-nine percent sometimes abandoned BNPL checkouts because of approval delays or repeated data entry.
For sellers working with an Amazon agency, the findings reinforce that reducing cart abandonment depends not only on offering flexible payments but also on how and where they are presented. The announcement also shows that execution remains important, as friction during the BNPL checkout process can still discourage shoppers from completing their purchases.
Report Highlights Who Uses BNPL and How It Shapes Spending
The PYMNTS Intelligence report found that the BNPL option has become part of everyday spending across the United States, extending beyond discretionary purchases to everyday essentials and major household items. The findings suggest that Buy Now Pay Later now influences not only whether consumers make a purchase but also how they manage their budgets.
The report also identified clear differences in adoption across age groups and providers, showing that younger adults remain the most active users. Consumers between 25 and 34 years old had the highest usage at nearly one in four people, while those aged 65 and older recorded the lowest adoption at just over 5%.
| Key Finding | Data |
|---|---|
|
Consumers who would not purchase without BNPL
|
43%
|
|
Consumers who would buy a cheaper product instead
|
42.4%
|
|
Consumers who would delay other bill payments
|
35.1%
|
|
Highest BNPL usage
|
Ages 25 to 34 at nearly 25%
|
|
Lowest BNPL usage
|
Ages 65+ at just over 5%
|
|
Largest estimated provider market share
|
Klarna at 26.2%
|
|
Second largest provider
|
Afterpay at 21.9%
|
|
Third largest provider
|
Affirm at 19.3%
|
The research also distinguished between consumers who rely on BNPL because of limited cash and those who use it primarily for payment flexibility and cash flow management. It further noted that more than 80% of adults already hold credit cards, while past-due payments among BNPL users ranged from 23.2% to 27.5% between April 2024 and January 2025.
Holiday Survey Shows BNPL Adoption Continues to Grow
An Experian survey of 1,002 consumers found that 43% have used or plan to use a BNPL option for holiday shopping in 2025, more than doubling from 20% reported in a similar 2023 survey. The survey was conducted in October 2025 using a third-party research company rather than Experian’s consumer credit database.
The findings also showed that Buy Now Pay Later has expanded well beyond a niche payment method, with adoption spanning consumers across different credit profiles. According to the survey, usage was strongest among adults aged 25 to 54, while higher-income households were slightly more likely to use BNPL than lower-income households.
Experian reported that consumers most often chose BNPL to better manage their spending, although convenience and interest-free repayment also influenced adoption. The report noted that many shoppers view payment flexibility as an important part of how they plan purchases instead of deciding how to pay only at checkout.
The survey also highlighted that missed payments remain a concern, although overall rates were similar to those reported in 2023. At the same time, the report noted that some BNPL providers have begun reporting repayment history to credit bureaus, allowing on-time payments to help consumers build a credit record that could support future borrowing.
