New campaign highlights how BNPL gives consumers a flexible, low-cost option to manage purchases and why 96% of loans are paid in full and on time
When Americans need to pay for a car repair, buy a new winter jacket, or purchase school supplies, they want options that are clear, fair, and affordable. Buy Now Pay Later (BNPL) has become one of those options for tens of millions of people.
Today, the Financial Technology Association (FTA) launched “Buy Now Pay Later: The Flexibility to Pay Your Way,” a national campaign that puts consumer and small merchants' experience at the center of the conversation about BNPL. The campaign launch coincides with Financial Literacy Month, highlighting how flexible payment options help consumers enhance their financial health and support household budgets.
“When someone splits the cost of a car repair or a school supply into four equal payments, with zero to low interest, that is not a financial risk. That is smart money management,” said Penny Lee, President and CEO of the Financial Technology Association. “96% of BNPL users pay in full and on time. The data show that consumers are using the tool responsibly, and any policy conversation should start there.”
Pay-in-four BNPL allows consumers to split the cost of a purchase into four or fewer installments with clear repayment terms. Small businesses benefit too - offering BNPL at checkout aligns with their customers' payment method of choice, helping increase conversion rates and reduce cart abandonment. Surveys show that 72% of Americans plan to use BNPL in the coming year, signaling growing consumer demand.
What Makes BNPL Work for Consumers
- Split a purchase into 4 or fewer payments over 6 to 8 weeks.
- Each BNPL loan is individually underwritten.
- No revolving balances.
- No hidden fees.
- Late payers are paused from using the services, preventing debt accumulation.
- The average loan amount is $135.
- Gradual credit limit increase.
- Fixed repayment dates and amounts.
- Transparent and easy to understand.
- About 1 in 5 American consumers has used BNPL.
- 96% of loans paid in full and on time.
- The majority of revenue from merchant fees, not interest or late fees charged to consumers.
The campaign includes a dedicated microsite with resources and facts about BNPL, along with a targeted digital advertising rollout in key markets. The goal is simple: ensure consumers, small businesses, and policymakers have access to the real story about how BNPL works and who uses it. Explore the microsite here and learn more about FTA’s advocacy on BNPL here.
About FTA
The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity. To learn more, please visit https://www.ftassociation.org/.
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