Navigating Inflation: The Rise of Buy Now, Pay Later in the U.S.
In the current economic climate marked by high inflation rates, many Americans are turning to buy now, pay later (BNPL) options to make high-priced purchases more affordable. 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 in March, driven by the Iran War, saw a 0.9% increase in prices, particularly in energy costs, with gasoline prices rising by 21.2%.
The ongoing conflict in the Middle East has disrupted global oil supply routes, contributing to the inflationary pressures faced by consumers. With inflation showing no signs of abating, more Americans are turning to BNPL services to finance their purchases. The U.S. BNPL market is projected to reach $127.94 billion this year, reflecting the growing popularity of this payment option.
Among the key findings of the survey, Millennials emerged as the most frequent users of BNPL services, with 74% having utilized it at least once. Men were found to use BNPL more than women, but women used the service more frequently for smaller purchases. The survey also highlighted differences in spending thresholds between men and women, with women more likely to consider BNPL for smaller purchases under $100.
In addition to BNPL services, Americans are increasingly relying on credit and debit cards to finance larger purchases since the onset of the Iran War. Total card spending has seen a significant increase, driven by higher gas prices and a rise in online shopping. However, department store spending and furniture/home improvement expenditures have declined, indicating a shift in consumer behavior amid economic uncertainty.
Higher-income households have shown a greater reliance on card spending compared to other income brackets, reflecting the broader impact of the economic environment on consumer sentiment. Overall, consumer confidence has declined, underscoring the challenges faced by Americans in navigating the financial implications of the ongoing conflict.