BOSTON — Consumers are increasingly using multiple buy now, pay later (BNPL) providers instead of remaining loyal to a single platform, signaling that the installment lending market has become far more competitive, according to a new report.
The report, from PYMNTS Intelligence and part of its Pay Later Ecosystem, found shoppers are increasingly viewing BNPL as a flexible financial management tool, selecting providers based on the terms offered for individual purchases rather than sticking with one brand. Researchers said the trend reflects consumers’ preference for fixed payment schedules with defined payoff dates instead of carrying revolving credit card balances.
The report, “BNPL’s Multi-Provider Moment: Why Shoppers No Longer Pick Just One,” is based on 10 surveys conducted between April 2025 and May 2026, including a May 2026 survey of 2,194 U.S. consumers.
Key Findings
Among the report’s key findings:
- Consumers are embracing multiple BNPL providers. Nearly three-quarters (74%) of BNPL users said they used two or more providers during the previous three months, up from 68% in April 2025. Nearly half (49%) reported using two or three providers, while 25% said they used four or more.
- No provider has established a clear lead. Affirm was used by 45% of BNPL customers, followed closely by Klarna and PayPal Pay Later at 44% each and Afterpay at 42%, leaving the four largest providers separated by just three percentage points.
- Competition has intensified over the past year. In April 2025, PayPal Pay Later led the market with 49% usage among BNPL customers, well ahead of competitors. Since then, Klarna’s usage has climbed 34%, Afterpay’s has increased 27% and Affirm’s has risen 25%, allowing Affirm to narrowly take the top position.
- Smaller providers posted mixed results. Sezzle recorded the largest gain among second-tier providers, with usage increasing from 12% to 17% over the past year. Uplift and Quadpay/Zip also gained users, while several others lost market share.
- Bank- and credit union-issued BNPL options lost ground. The share of consumers using installment payment products offered through their banks or credit unions fell from 11% to 6%, representing the largest decline among all provider categories tracked in the study.
Reflection of Differences in Offerings
PYMNTS Intelligence said the growing use of multiple providers reflects significant differences in product offerings among the market’s leading companies.
Affirm offers several interest-free short-term payment options as well as installment loans extending up to five years on purchases of as much as $30,000. Klarna combines short-term payment plans with financing up to two years. PayPal offers both “Pay in 4” and longer-term monthly financing, while Afterpay combines its “Pay in 4” product with installment loans lasting up to 24 months.
Researchers said those differences make it practical for consumers to compare providers in much the same way they compare retailers, choosing the financing option that best fits a particular purchase.
The New Driver
The report concluded that the BNPL market has entered a new stage in which product features and consumer choice, rather than brand loyalty, are driving competition. With the four largest providers clustered within a few percentage points of one another, PYMNTS Intelligence said no single company can currently claim to dominate the market.
