High Earners Help Banks Take the Lead in Installments

Installment lending was once framed as a way to broaden access to credit.

According to a PYMNTS Intelligence April report, “The Pay Later Data Shift: Credit Card Installments Take the Lead,” the market is moving beyond the original buy now, pay later (BNPL) narrative. Rather than displacing traditional credit products, installment lending is increasingly being absorbed into existing card ecosystems, while some of the strongest demand is coming from consumers with the greatest financial resources.

The report’s central finding is that credit card installment plans now command a substantial lead over BNPL offerings. Across eight surveys conducted during the past year, consumers used credit card installment plans at more than twice the rate of BNPL products. Card installment usage increased from 23% in April 2025 to 36% in March, while BNPL usage opened at 15% and remained largely unchanged over the same period.

An Embedded Feature

The numbers suggest that installment lending is becoming less of a product category and more of a feature embedded within established banking relationships. Consumers appear increasingly willing to finance purchases through accounts they already use rather than seek financing from a separate provider.

Conventional assumptions have often linked pay later products with consumers seeking alternatives to traditional credit or managing limited financial flexibility. PYMNTS Intelligence found a different pattern. Consumers earning at least $150,000 annually consistently used BNPL at roughly double the rate of consumers earning less than $50,000.

In April 2025, 19% of high-income consumers reported using BNPL compared with 10% of low-income consumers. By November, that gap widened to 22% versus 7%. By March, usage stood at 20% among high earners and 10% among low-income consumers. At no point during the period examined did low-income consumers overtake affluent households in BNPL adoption.

That distinction carries implications for lenders.

If installment products are increasingly attracting financially secure consumers, the economics begin to shift. Credit risk profiles improve. Average transaction values may rise. Customer acquisition strategies become less focused on expanding access to credit and more focused on deepening engagement with existing customers.

Read the report: The Pay Later Data Shift: Credit Card Installments Take the Lead

The report pointed to a market where installment lending is becoming a purchasing and cash flow management tool rather than a financial lifeline. Affluent consumers appear to be using these products because they value payment flexibility, budgeting control and convenience, not because they lack access to other forms of credit.

For banks, the findings reinforce the value of existing customer relationships. Card issuers possess transaction histories, established trust and direct access to consumers through accounts that are already active. Those advantages can reduce customer acquisition costs while increasing the likelihood that installment products remain within the issuer’s ecosystem.

For FinTechs and standalone BNPL providers, the challenge becomes more complex. Growth opportunities remain, particularly among high-income consumers, but success may depend less on positioning BNPL as an alternative to cards and more on integrating financing into broader commerce and banking experiences.

The question is no longer whether consumers want to spread payments over time. The question is which institutions are best positioned to deliver that capability at scale. Usage patterns indicate that established card issuers hold an advantage, while affluent consumers are helping determine where the market heads next.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.