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Despite being a leader in AI use, the BNPL provider said leaning on AI for customer service lowered support quality

In-store payments provide a new growth avenue for BNPL providers facing slower industrywide volume growth

The BNPL provider is racking up partners in a major expansion push before its now-delayed IPO

Affirm. Afterpay. Apple. Google. J.D. Power. JPMorgan Chase. Klarna. PYMNTS.com. Zip.

Affirm also reportedly explored a subscription service called Affirm Plus but didn’t follow through. What this means: We forecast that 43.2 million US consumers used Klarna last year—making up more than half of all US BNPL users. That means less than 1% of its US base signed up for the service, which is not a promising sign for future consumer demand.

For example, Affirm partnered with Tekmetric in August, bringing its BNPL solution to auto repair businesses.

One way they can do this is by following Affirm’s lead and begin credit reporting: Affirm announced earlier this month that it would report its pay-over-time products to Experian, with plans to expand to other credit reporting agencies in the future.

Market instability as well as concerns over an economic slowdown as a result of President Trump’s tariffs are making the BNPL player pause its plans

Sezzle faces an uphill battle competing against larger players like Affirm and Klarna

Klarna most recently replaced Affirm as Walmart’s exclusive BNPL provider. In February, it partnered with JPMorgan Payments, making the BNPL option available to merchants using JPMorgan’s Commerce Solutions Platform. And in January, Klarna expanded its distribution partnership with Stripe across 26 countries.

They could also work with FIS, which recently teamed up with Affirm to bring the fintech’s BNPL solution to its bank partners.

In the past year, Apple Pay partnered with Affirm and Klarna. Google Wallet also recently added Afterpay and Klarna, building on its tie-ups with Affirm and Zip. Delinquencies will remain low. Structural repayment differences will keep BNPL default rates lower than those of credit cards. Most BNPL providers require automatic repayments, helping keep rates low.

Affirm got the lowest score, at 607. This is the second year in a row that Amex, Chase, and Citi took the top three spots in the annual survey. Why this matters: Card-linked installments are BNPL fintechs’ leading competitive threat—contributing to a drag on their growth. We forecast that US BNPL payment value will rise 15% YoY this year, compared with 20.8% YoY in 2024.

The BNPL provider has made strong inroads in the US but faces steep obstacles in growing its market share