The survey did not find that 49% of Gen Z used BNPL
The Federal Reserve’s 2025 Survey of Household Economics and Decisionmaking found that 16% of all adults had used buy now, pay later in the prior 12 months. Among adults ages 18–29, 22% had used it.
Among BNPL users, 26% overall reported paying late. The late-payment rate was 32% among users ages 18–29. These measures have different denominators: 22% is an adoption rate among adults in that age group, while 32% is a late-payment rate among that group’s BNPL users.
What the 17% figure means
The Federal Reserve reported that 64% of BNPL users who paid late—equal to 17% of all BNPL users—said they were charged extra for being late. The 17% figure is therefore not the overall late-payment rate.
Separately, 11% of BNPL users said a BNPL payment triggered an overdraft or nonsufficient-funds fee from their bank during the prior year. A product advertised without interest can still create costs through late charges or the funding account.
Affordability was part of the story
When the survey asked BNPL users for their main reason, 31% selected spreading out payments and 29% said it was the only way they could afford the purchase. Among users with family income below $25,000, 40% selected the affordability response.
Those answers describe respondents’ stated main reasons. They do not prove that BNPL caused financial hardship, nor do they establish that every no-interest installment purchase is harmful.
Evaluate the actual agreement and payment schedule
The CFPB describes BNPL credit as typically a four-payment, no-interest retail loan, but “typically” is not a contract term. Fees, autopay requirements, dispute procedures, returns, credit reporting, and missed-payment consequences should be checked in the provider’s current agreement.
A practical audit lists every open plan, remaining payment, due date, funding account, pending return, and potential fee. Comparing that schedule with cash available after essential bills is more useful than treating one survey percentage as a personal diagnosis.
Sources and methodology
Checked August 26, 2026. Survey findings describe the named sample, not every person in a generation or population. Limits, rates, market facts, and program rules can change.
- Federal Reserve Board — Economic Well-Being of U.S. Households in 2025: Credit — reports BNPL use, late payments, fees, demographics, and stated reasons
- Consumer Financial Protection Bureau — The Buy Now, Pay Later Market — describes the product and the scope of the CFPB market study
Educational information only. This is not individualized financial, investment, tax, legal, medical, or mental-health advice. Verify current rules and consider an appropriately licensed professional for decisions specific to you.
