74% of BNPL Users Choose More Than One Provider

§ 01 Executive Snapshot

• What: BNPL users are increasingly utilizing multiple providers for their payment needs.
• Who: BNPL users, Affirm, Klarna, PayPal Pay Later, Afterpay, and Sezzle.
• Why it matters: This trend signifies a shift in consumer behavior toward flexibility and choice in financial management, impacting how BNPL providers operate and compete.

§ 02 Key Developments

• 74% of BNPL users had used at least two providers during the previous three months as of May 2026, up from 68% in April 2025.
• 49% of BNPL users relied on two or three providers, while another 25% used four or more.
• 45% of BNPL users chose Affirm, compared with 44% for Klarna, 44% for PayPal Pay Later, and 42% for Afterpay.

§ 03 Strategic Context

• The BNPL market has evolved to allow consumers to compare providers based on various factors such as loan size and interest rates, leading to more informed decisions.
• The competitive landscape among BNPL providers is shifting towards a consumer-driven model, where no single provider dominates the market.

§ 04 Strategic Implications

• Immediate consequences include increased competition among BNPL providers, pushing them to enhance their underwriting and risk management practices.
• Long-term implications may involve a more standardized approach to disclosures and data-sharing practices, ultimately benefiting consumers.

§ 05 Risks & Constraints

• Potential risks include challenges in risk assessment for providers due to fragmented consumer data and increased vulnerabilities to fraud.
• Competition may also lead to unsustainable lending practices if providers prioritize market share over responsible lending.

§ 06 Watchlist / Forward Signals

• Future developments to watch include changes in consumer behavior regarding provider choice and the impact of increased competition on service quality and security measures.
• Upcoming reports or surveys that track BNPL user preferences and provider performance will signal the ongoing evolution in this space.