Personal Finance News
Stats Show Vast Majority of BNPL Holiday Shoppers Paid On Time
“Buy Now, Pay Later” service Afterpay has released new data that suggests an overwhelming number of its users are making on-time payments.
About Afterpay’s Holiday Report:
According to Afterpay, 96% of customers in the United States who used the company’s Pay-in-4 service to make a purchase between Black Friday and Cyber Monday last year paid off their purchase either early or on time. Furthermore, the company says that, as of Q3 2025, 96% of installment payments are made on time, while 98% of Pay-in-4 customers aren’t assessed any late fees.
Elsewhere, in a report from last year, Afterpay research found that 63% of Gen Zers surveyed are moving away from using credit cards and toward alternatives (including BNPL). Asked why this was, many cited “hidden fees” and “financial stress.”
On that note, Afterpay contrasts their results with recent data that shows the average credit card balance is rising. A Consumer Financial Protection Bureau report from last month shows that credit card debt among Americans exceeded $1.2 trillion in 2024. That pegs the average monthly balance at $5,300.
Afterpay’s release comes as BNPL services, while popular among consumers, have also attracted scrutiny from financial experts and regulators.
What They’re Saying:
In a statement about the Afterpay report, the Global Head of Commerce Sales for Block (Afterpay’s parent company) Marni Schapiro said, “This data is a testament to the discipline and financial responsibility of our customers. During the holidays—a time when spending pressures are at their highest—our customers demonstrated that they can shop confidently and pay responsibly.”
Schapiro added, “Afterpay isn’t just about flexibility; it’s about empowering people to make smarter financial decisions without the hidden costs and stress that come with credit cards.”
My Thoughts:
I still don’t know how I feel about “Buy Now, Pay Later” services overall. However, giving credit where credit is due (no pun intended), I do think that this data is impressive.
Then again, there are some aspects of the story we don’t know. For example, how much did those in the other 4% of customers end up paying for their purchases? Additionally, while the 96% of users managed to pay off their BNPL installments, it’s always possible that they still racked up credit card debt anyway. Granted, the latter scenario isn’t exactly Afterpay’s fault, but I do think it’s a question worth exploring.
The bottom line is that, if you do plan on using BNPL services, make sure you have a plan to pay it off on time or early. But if you can pay it all upfront to begin with, that may be a better route overall.
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