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Credit Card Installments Reach 33% Adoption, Outpacing BNPL
Card issuers capture buy-now-pay-later demand as credit card installment plans grow to 33% adoption, double the rate of standalone BNPL, according to PYMNTS data.
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Buy now, pay later was supposed to take business away from credit cards. Credit cards appear to be taking a page from BNPL instead.
PYMNTS Intelligence research from the "Pay Later Ecosystem Report" finds consumers are increasingly choosing installment plans attached to their credit cards. Across eight surveys, consumers used credit card installment plans at more than twice the rate of BNPL.
The trend is less about consumers abandoning Pay Later and more about where they want to get it. Card issuers can put installment options inside accounts and payment relationships consumers already use. That allows them to offer the flexibility of Pay Later without requiring customers to adopt another provider.
The generational numbers show the shift. Gen Z credit card installment use rose from 31% in April 2025 to 47% in March 2026. BNPL use moved only from 21% to 23% over the same period. Millennials and bridge millennials followed the same broad pattern.
Income adds another wrinkle. BNPL use consistently ran higher among consumers earning at least $150,000 than among those earning less than $50,000. In November, the respective rates were 22% and 7%. By March, they stood at 20% and 10%.