Buy Now, Pay Later Isn’t Just a Payment Option Anymore

In just a few years, Buy Now, Pay Later (BNPL) has evolved from a rising fintech novelty into a financial mainstay—one that’s increasingly intertwined with how consumers experience and afford daily life. In 2023, BNPL was hailed for its convenience and flexibility, offering shoppers an alternative to credit cards through short-term, interest-free installment plans. Fast forward to 2025, and it’s no longer just an alternative payment method. Today, BNPL is functioning as a financial life raft, a coping mechanism for consumers grappling with the realities of navigating sky-high costs, stagnant wages, and dwindling savings.

A glance at Coachella 2025 illustrates this shift. This year, an estimated 60% of festival attendees used BNPL to finance their entire experience, from general admission wristbands and roundtrip airfare to hotel stays and curated outfits. What was once an impulsive, carefree weekend has become a carefully budgeted endeavor, enabled by payment flexibility. Considering the upfront expensive nature of festivals like Coachella, not everyone has sympathy with one Reddit user saying, “Anyone who thinks $400 a month is a justifiable expense to go to Coachella and can’t actually afford it deserves to be in debt, I’m sorry” but the reality is more nuanced.

This isn’t merely a story about consumer preference or payment innovation. It’s a reflection of how even life’s indulgences and milestones now require financial scaffolding. Festivals like Coachella, once symbolic of spontaneity and youth, now underscore a broader truth: joy and connection increasingly depend on financing.

BNPL Moves Into the Essentials

The reach of BNPL is no longer limited to luxury or discretionary spending. It’s now embedding itself into everyday transactions, even dinner. In March 2025, DoorDash announced a partnership with Klarna, allowing users to split their meal delivery bills into multiple payments. By May, Costco followed suit, unveiling a partnership with Affirm to offer installment plans on purchases over $500, effectively encouraging larger baskets and giving cash-strapped consumers a way to stretch their spending.

The reaction to these developments has been mixed. While some celebrate the increased accessibility and flexibility, others see it as a troubling sign. On platforms like Twitter/X, the sentiment is increasingly skeptical: “Is this really a great win for society that people are buying toilet paper on payment plans?” one user asked. Another joked, “Finally I don’t have to pay for my hot dog combo all at once,” highlighting a breakdown between financial innovation and economic wellbeing.

As BNPL becomes common, its novelty wears thin, giving way to more critical evaluations of its long-term implications. Consumers are starting to ask: are we empowering people or just deferring the inevitable?

Seems Unsustainable? That’s Because It Is

A recent LendingTree study found that two in five BNPL users have made late payments in the past year. While companies like Affirm emphasize that delinquency rates remain low, the data reveals growing strain. As household budgets stretch thinner, the appeal of installment payments becomes more about necessity than convenience.

The business model behind BNPL also invites scrutiny. A Reddit user captured the sentiment well: “0% is always a win until you miss the due date. When the entire business model of the company is built around making money when you miss a due date, the company is incentivized to overload you or ‘help’ you make a mistake that makes them money.” This highlights a growing concern that while BNPL offers short-term relief, it may also contribute to long-term financial fragility.

A Shifting Financial Landscape

BNPL was never intended to serve as a cornerstone of financial survival. But in 2025, that’s exactly what it’s becoming. What began as a tool for flexibility has evolved into structural support for a generation priced out of their own lives. And as BNPL becomes more embedded in daily spending, its influence on the broader payments landscape will become hard to ignore.

This shift raises critical questions. Will younger consumers begin to move away from traditional credit cards in favor of predictable, interest-free installments? Could we see major credit card issuers align themselves with BNPL providers to maintain relevance? And how might retailers rethink the role of BNPL, not just as a payment option but as a strategic lever to drive conversion and loyalty?

One thing is clear: whether it’s a grocery run, a Friday night meal, or a weekend festival, paying later is becoming an increasingly normalized part of how people afford life. As this transformation unfolds, staying attuned to the implications for consumers, brands, and financial institutions alike will be essential.

Reading Between the Lines

BNPL’s evolution into a financial coping tool reveals deeper tensions in today’s consumer landscape. What was once marketed as flexible, and empowering is now often a means of getting by. For many, it’s about making ends meet, not buying more. That shift challenges how brands define value, trust, and responsibility.

As BNPL becomes a fixture in everyday spending it raises an urgent question: how do we offer financial access without deepening financial vulnerability?

At KS&R, we’re paying attention to how these signals ripple outward. Because understanding the “why” behind consumer behavior today is key to helping brands make better decisions tomorrow.

About KS&R

KS&R is a nationally recognized strategic consultancy and marketing research firm that provides clients with timely, fact-based insights and actionable solutions through industry-centered expertise. Specializing in Technology, Business Services, Entercom & Recreation, Healthcare, Retail & E-Commerce, and Transportation & Logistics verticals, KS&R empowers companies globally to make smarter business decisions. For more information, please visit www.ksrinc.com.