Navigating High Inflation: The Rise of Buy Now, Pay Later (BNPL) Services in the U.S.
In the current economic climate marked by high inflation, many Americans are turning to buy now, pay later (BNPL) options to afford their purchases. A recent survey by Omni Calculator revealed that 64% of U.S. adults have tried BNPL at some point, with 70% making purchases using this method in 2025. The surge in consumer prices, particularly driven by the Iran War, has led to a 0.9% increase in prices, with energy prices rising by nearly 11% in March.
The disruption in commerce due to the conflict involving the U.S., Israel, and Iran has significantly impacted global oil flow through the Strait of Hormuz. This has contributed to the highest inflation rate since April 2024, with gas prices accounting for a significant portion of the increase. In response to these economic challenges, a growing number of Americans are turning to BNPL services to finance their purchases.
With inflation expected to persist, the BNPL market in the U.S. is projected to reach $127.94 billion this year. Millennials are the most active users of BNPL services, with 74% having utilized the service at least once, surpassing Gen Z, Gen X, and Baby Boomers. The survey also highlighted that more men have used BNPL services, but women tend to use it more frequently for smaller purchases.
While short-term loans are being used for smaller expenses, Americans are increasingly relying on credit and debit cards for larger purchases since the onset of the war. Total card spending has seen a 4.7% year-over-year increase, with gas spending and online shopping showing significant growth. As consumers navigate the challenges of high inflation, BNPL services and traditional payment methods are becoming essential tools for managing expenses.