The Consumer Financial Protection Bureau (CFPB) recently released a report examining trends in the buy now, pay later (BNPL) market. The BNPL market—most commonly structured as a four-payment, no-interest loan used for retail purchases—continues to grow, though at a more moderate pace than in prior years. Drawing on data from six large BNPL providers, recent findings highlight how consumer usage and overall market activity evolved during calendar years 2022 and 2023.
A Growing but Maturing Market
The data shows that BNPL remains a popular financing option for consumers. Between 2022 and 2023, the number of BNPL loans originated by the surveyed lenders increased by 23 percent, while the total dollar volume of those loans rose by 26 percent after adjusting for inflation. While these figures reflect continued expansion, they also signal a slowdown compared to the rapid growth seen in earlier years.
The number of consumers using BNPL products has also increased. In 2023, the six companies reported a combined total of 53.6 million users who took out at least one BNPL loan, representing a 12 percent increase from the previous year. Because lenders generally cannot track whether consumers are using multiple BNPL providers, this figure likely overstates the true number of unique BNPL users across the broader market.
How Consumers Are Using BNPL
Beyond growth in user numbers, the data suggests that consumers are relying on BNPL more frequently and for larger amounts. In 2023, users took out an average of 6.3 BNPL loans per lender, up from 5.7 loans in 2022—an increase of 11 percent. At the same time, the average annual dollar amount borrowed per consumer per lender rose by 14 percent, increasing from $745 in 2022 to $848 in 2023 when adjusted for inflation.
Because the data analyzed was aggregated at the lender level rather than the individual loan level, these figures may understate how often consumers use BNPL or how much they borrow in total, particularly for those who use multiple BNPL providers.
Declining Late Fees and Charge-Offs
While usage has increased, indicators of consumer distress appear to be trending downward. The share of BNPL loans assessed a late fee declined from 5.2 percent in 2022 to 4.1 percent in 2023. Late fee revenue also fell as a percentage of total loan origination volume, dropping from 0.24 percent to 0.18 percent year over year.
Similarly, charge-off rates improved. In 2023, 1.83 percent of BNPL loans were charged off or deemed uncollectible, down from 2.63 percent in 2022. This decline suggests stronger repayment performance among BNPL users during the period studied.
Understanding the Scope of the Data
The findings focus specifically on traditional “pay-in-four” or “split pay” BNPL products—typically structured as four installments with a 25 percent down payment followed by three payments due at two-week intervals. While many BNPL providers also offer other forms of point-of-sale financing, such as longer-term installment loans or credit card installment plans, those products were not included in this analysis.
Given the limited amount of publicly available data on the BNPL market, these insights help fill an important gap in understanding how the market is functioning and how consumer behavior is changing over time. Overall, the data points to a BNPL market that is still expanding, increasingly integrated into consumer spending habits, and showing signs of improving repayment outcomes.
Read the Full Report
If you’d like to explore the data and additional insights in more detail, you can read the full report here:
https://files.consumerfinance.gov/f/documents/cfpb_bnpl-market-report_2025-12.pdf
Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
