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The news: Middle-income credit cardholders who are satisfied with their card are more likely to use buy now, pay later (BNPL) products than all other BNPL users, per a YouGov survey. 48% of satisfied US credit cardholders who used BNPL in the last month reported being middle-income, versus 39% of all BNPL users. BNPL users who were satisfied with their credit card were also more likely to be higher income than all BNPL users, at 10% to 8%. Our take: Issuers of credit cards should note that even their happiest customers desire the flexibility of interest-free installment plans. Credit card companies can get ahead by marketing their card-linked installment plans to their cardholder bases and capture the BNPL spend that could have been lost to a fintech.

The news: Buy now, pay later (BNPL) firms are exhorting the Department of Housing and Urban Development (HUD) not to write new rules about how installment loan histories would affect federal home loan eligibility. Our take: BNPL providers are divided on whether furnishing their loan information supports or hurts their espoused mission for financial inclusion and helping consumers access credit. Affirm appeared the odd one out by offering more transparency about its consumers鈥� financial health. However, if HUD moves ahead with new loan eligibility rules, its customers could end up the better for it, while reporting naysayers Klarna and Afterpay will have to scramble to set up their customers for success

The news: Michigan State University Federal Credit Union (MSUFCU) launched an in-house buy now, pay later (BNPL) feature to serve its members鈥� financial needs, per a press release. Our take: Credit unions can compete with big banks and fintechs alike by leaning into what younger consumers want. Catering to these student members helps credit unions stave off their age dilemma: In 2023, 69% of credit union customers were Gen X or older, per a McKinsey & Company study. Conversely, banks are performing better with younger consumers: 41% of their banking population is millennial and Gen Z and 58% are Gen X or older. As graying members spend down savings and shrink credit unions鈥� deposits and interest income, players like MSUFCU can strengthen their banking relationships with young members through aligned alternative finance methods like BNPL.

The findings: Financial institutions (FIs) that have enabled buy now, pay later (BNPL) for debit cards see increased card usage frequency, higher spending, and larger purchases, per recent equipfi analysis cited by The Financial Brand. Why this matters for FIs: The BNPL explosion is over, as user growth decelerates and the industry reaches maturation. But FIs can still find value in BNPL. By integrating BNPL directly into existing debit card programs, banks stand to increase card usage, strengthen customer loyalty, and boost revenues. This strategy also turns debit cards, a very traditional banking product, into something that can better meet consumer needs. Today鈥檚 banking customers crave flexibility鈥攁nd it鈥檚 especially important to Gen Zers.

The news: Marqeta鈥檚 total processing volume (TPV) hit $91 billion in Q2, a 29% YoY increase. Our take: Marqeta鈥檚 success with buy now, pay later could help it finally wean off its dependence on Block, which still accounts for 46% of its business. With planned expansions into Europe, Marqeta has the opportunity to put more distance between it and its competitors by leaning into solutions for alternate financing and currencies, like BNPL and crypto.

The news: FundCanna launched B2B buy now, pay later (BNPL) platform ReadyPaid to address the cannabis industry鈥檚 endemic cash-flow problem. Our take: Alternative financing pairing well with an alternative industry comes as no shock. If cannabis is finally descheduled by the federal government鈥攐r at least reclassified, as President Donald Trump has considered鈥擱eadyPaid will have a harder time competing against traditional banks that likely will openly service weed-related business without regulatory threats.

The news: More than one-third (38%) of parents are stressed about affording back-to-school items, per Zip鈥檚 back-to-school survey. Our take: Given the level of strain for parents, BNPL providers have an opportunity to pitch their alternative credit models to overstretched families. Targeted marketing campaigns around back-to-school season and easy opportunities to use installments in store and online through BNPL-enabled cards and partnerships can strengthen spend.

The news: Klarna is now available in-store at over 400 Walmart Canada locations. Canadian Walmart shoppers can scan a QR code at assisted lane checkouts to choose between Pay in Full or Pay in 4. Only purchases over CAD 50 will be eligible for Klarna鈥檚 financing. Our take: Klarna鈥檚 partnerships with Walmart in the US and Canada are major coups for the BNPL player. Affirm鈥檚 dominance stateside is driven by its strategic partnerships and strong Affirm card adoption. Klarna should continue staking out new tie-ups with major retailers and boost Klarna card use to secure a stronger presence in Canada.

41% of US buy now, pay later (BNPL) users have bought clothing, shoes, and outfit accessories with the services, according to April data from LendingTree and QuestionPro.

The news: Klarna and Afterpay will not share the majority of their consumers鈥� loan information with credit bureaus until they can receive confirmation that their customers will not be penalized for seeking buy now, pay later (BNPL) plans. Our take: Affirm鈥檚 early plunge into credit reporting has been blunted against its competitors鈥� refusal to participate in the system, but it still takes the reputational lead in terms of being a 鈥渢rustworthy鈥� provider.

The news: Affirm鈥檚 gross merchandise volume (GMV) grew 43% YoY to $10.4 billion, per Q4 FY 2025 earnings (ended June 30). The buy now, pay later (BNPL) company reported strong numbers across the board. Revenues soared 33% YoY to $876 million. Active consumers increased 24% YoY to 23 million. Transactions per active customer grew 19% to 5.8. The number of active merchants jumped 24% to 337,000. Our take: Affirm鈥檚 dominance in the US market is propelled by powerful Affirm Card spend鈥攚e forecast Affirm will edge out Klarna in terms of US volume by $4.7 billion. If the firm can keep growing its average ticket size, it could carve out a healthy niche in the consumer credit market: purchases that are too small to jump through the hoops of securing a personal loan but too large to pay off in one month on a credit card balance.

The news: Klarna, Affirm, and Zip will be available as autofill payment options through Google Pay on Chrome for cart sizes of $35 or more. Our take: Increasing the ease and availability of a payment method for US consumers can increase volume for BNPL providers and Google.

The news: Klarna is seeking a valuation of up to $14 billion in its coming IPO, per filings with the Securities and Exchange Commission. The BNPL provider will list with the New York Stock Exchange under the ticker symbol KLAR. The stock price at IPO is anticipated to be between $35 and $37 per share. Our take: Klarna is hoping its IPO can capture investors鈥� hunger for high-growth tech stocks after a period of uncertainty. Fueled by its partnerships and card launches, Klarna is setting itself up to challenge Affirm on US BNPL spend.

The news: Klarna鈥檚 revenues jumped 20% YoY to $823 million in the latest earnings released ahead of its IPO this fall. Gross merchandise volume (GMV) spiked 19% to $31.2 billion鈥攏early four times the size of competitor Affirm鈥檚 $8.6 billion. Klarna鈥檚 US GMV growth is even more impressive, at 37% YoY. Our take: Klarna will have an uphill battle if it wants to dethrone Affirm as the dominant BNPL provider in the US. Given Affirm鈥檚 recent partnership with Stripe, Klarna may not be able to rely on the fintech for such rapid growth anymore鈥攅specially considering Affirm鈥檚 more direct integrations with Stripe in-store.

The news: FICO will release credit scores that incorporate buy now, pay later (BNPL) reporting this autumn, per a press release. Our take: Reporting BNPL data to the credit bureaus would be a solid step toward combatting BNPL鈥檚 鈥減hantom debt鈥� criticism.

The news: Google Pay added Klarna to its in-app BNPL roster of Affirm, Zip, and Afterpay. Our take: Klarna鈥檚 late adoption of a physical card like Affirm鈥檚 Affirm Card in the US set the BNPL provider back in terms of capturing a wider user base and payment volume. Integrations like Google Pay and Apple Pay can help overcome that gap鈥攖hough Affirm also has partnerships with both Google Pay and Apple Pay.

The news: Klarna is pivoting toward digital banking in the US, preparing for its IPO amid growing scrutiny of the buy now, pay later (BNPL) market. This includes launching US debit cards and expanded savings offerings, with Klarna rebranding itself as a neobank aiming for a "super app" experience. Our take: This signals a broader trend of fintechs evolving into banks, intensifying pressure on traditional financial institutions (FIs) to differentiate. FIs must clarify their niche, pursue strategic scale, and accelerate digital transformation. Despite Klarna's expansion, FIs retain a key advantage: their card-based installment plans still outperform BNPL in customer satisfaction.

The news: Sezzle debuted a suite of payment and deal-hunting features, per a press release. Our take: Sezzle needs to find any kind of foothold in the BNPL space, as its market share is massively outstripped by competitors like Klarna and Affirm.

The news: Affirm partnered with Shopmonkey and Xsolla so auto mechanics and video game developers can offer installment plans at checkout. Our take: Affirm has focused on building out its partnership network and the Affirm Card鈥攁nd its fiscal Q3 results (ended March 31, 2025) bear out the strategies鈥� success, with total revenues increasing 36% YoY.

The news: Klarna will be the default payment option for Bolt鈥檚 CheckoutOS merchants, per a press release. Our take: Klarna faces multiple challenges. It has to increase its availability to US consumers while also rivaling credit cards that offer both installment plans and cash back or points that likely exceed the value of Klarna鈥檚 gift-based rewards system through Nift

The news: Klarna partnered with Nift, a gift platform, to offer 鈥済ift鈥�-style rewards for customers鈥� BNPL purchases. Our take: Until they can close that gap, BNPL players will struggle to attract a meaningful share of shoppers. It鈥檚 one reason we forecast BNPL user growth will slow every year through 2029.

The news: Fiserv will launch its own stablecoin, FIUSD, by end of year to complement its existing banking and payments infrastructure. Our take: Reporting BNPL data to the credit bureaus would be a solid step toward combatting BNPL鈥檚 鈥減hantom debt鈥� criticism.

The news: Klarna will offer unlimited 5G data, talk, and text for $40/month with coverage on AT&T鈥檚 network in the US, per a press release, with plans to expand this deal to the UK and Germany soon. Our take: Klarna鈥檚 ambitions to be a BNPL provider, a mobile phone service, a neobank, and most recently鈥攁ccording to CEO Sebastian Siemiatkowski鈥斺�渁 digital financial assistant,鈥� per CNBC, signals the company鈥檚 voracious appetite to be everything at once.