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BNPL Credit Reporting Poised to Reshape Payment Behaviors

(New York, NY) As major credit bureaus begin incorporating Buy Now, Pay Later (BNPL) data into their reporting systems, consumer payment behaviors are poised to shift—but only for those who are aware of the change. According to Auriemma Group’s latest issue of The Payments Report, over half (54%) of cardholders say BNPL credit reporting would influence whether they choose to pay with BNPL over a credit card—with more saying they’d lean toward credit cards (38%) than toward BNPL (16%).

This potential shift in preference is accompanied by changes in repayment behavior. One-third (34%) of BNPL users say they would prioritize paying off balances as quickly as possible if their activity were reported. Yet others would move away from BNPL altogether, with 6% saying they would stop using it. This dual reaction suggests that, for some, credit reporting doesn’t simply change payment methods—it alters their approach to debt management altogether.

Over 6-in-10 debit cardholders feel that BNPL providers should be reported to credit bureaus. However, Auriemma’s research found that over half worry that doing so will harm borrowers overall.

“These findings underscore that awareness alone isn’t enough to drive behavior change,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Cardholders are weighing the benefits of building credit against the possibility of negative outcomes, and their choices will depend on how they perceive and balance those risks.”

Generational differences also play a role. Millennials are far more likely than their older counterparts to believe BNPL credit reporting would yield a positive impact on their credit score while Baby Boomers and older, who are less engaged with BNPL overall, are more likely to believe the change will have no impact on their scores.

“Reporting BNPL activity to credit bureaus introduces both accountability and opportunity,” says O’Connor. “Some cardholders will embrace BNPL as a credit-building tool, while others will treat it more cautiously, changing how and when they choose to borrow. But for many, the biggest change will come only once they fully understand how BNPL activity affects their credit profile.”

Want to learn more about Buy Now, Pay Later? Auriemma has been capturing trend data about BNPL offers, enrollment, providers and more on a quarterly basis since 2019. Email research@auriemma.group for more information.

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in June 2025 among 802 adult debit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

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Does Buy Now, Pay Later Cannibalize Private Label Credit Cards?

(New York, NY) In the ever-evolving landscape of retail finance, Buy Now, Pay Later (BNPL) is reshaping the way consumers approach their borrowing and purchasing decisions. As store card ownership wanes, BNPL has emerged as a compelling option for modern shoppers seeking flexibility and convenience. Auriemma Group’s latest issues of The Payments Report and Cardbeat US uncover the factors driving point-of-sale decisioning between BNPL and store cards, and how a good BNPL experience can increase store card acquisition.

Buy Now, Pay Later directly competes with store cards at the point-of-sale.

BNPL offers have become commonplace when shopping online or in-store. According to The Payments Report, 64% of debit cardholders say they have been offered an installment plan online (up from 45% in Q4-2019). In-store offers have also increased slightly, now at 36%. And about half of those offered an installment plan in either channel report enrolling in the past 12 months. This momentum is in direct contrast to store cards, whose ownership has dropped 14-percentage points (now 39%) since 2015.

“We found that at the point-of-sale cardholders are most interested in applying for these products for larger ticket size purchases,” says Jonathan O’Connor, Senior Manager of Research at Auriemma. “However, when both Buy Now, Pay Later and store cards are offered, cardholders are near evenly split on which option to select, with a slight preference towards Buy Now, Pay Later.”

But what would happen if retailers only offered store card applications at the point-of-sale? Not offering BNPL at the point-of-sale would have a marked impact on store credit card enrollment. 54% of those more likely to select BNPL say they would be likely to apply for a store card instead, if it were the only option presented to them.

Fee amounts and interest rates inform cardholders’ application decisions.

About four-in-ten debit cardholders say a retailer’s recommendation would make them likely to apply for a BNPL plan (41%) or store credit card (35%) at the point-of-sale. However, according to Auriemma’s research, it is the least important of the factors tested.

While a retailer’s recommendation or signage may initiate decisioning, BNPL and store card acquisition often hinges on fees, rates, and benefits. Over eight-in-ten debit cardholders say these factors are at least somewhat important when deciding whether to apply for a BNPL plan or store card at the point-of-sale. Second tier factors include trust in the brand, credit score impact, and one-time discount offers.

“Buy Now, Pay Later plans offer consumers payment flexibility without the commitment of applying for a credit card,” says O’Connor. “And while in many ways Buy Now, Pay Later can be seen as a competitor to card product acquisition and usage, the method can act as a gateway to a future card relationship.”

A good Buy Now, Pay Later experience could open the doors to store card application.

While there is much to be said about the ways BNPL competes against store cards, there is also evidence that the option could create a pipeline to store card enrollment. According to Cardbeat US, 41% of credit cardholders say a good BNPL experience with a brand they shop at regularly is likely to encourage them to apply for a store card, if offered. This is particularly true of Gen Z and Millennial cardholders.

54% of credit cardholders who were approved for a BNPL plan say they were offered a store card at some point during their experience. Notably, 69% of these cardholders applied and were approved for a store card during that time, highlighting just how synergistic the two products can be.

“Buy Now, Pay Later does have an impact on store card application, but the pendulum swings both ways,” says O’Connor. “Some consumers will choose Buy Now, Pay Later at the point-of-sale over and over again, while some will inevitably find their way to store card enrollment through positive BNPL experiences, demonstrating the potentially symbiotic relationship between the two offerings.”

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in March and April 2024 among 800 adult debit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

Cardbeat US

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in March 2024 among 800 adult credit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.

About Auriemma Group

For 40 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London. For more information, email Jonathan O’Connor at research@auriemma.group.

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Positive Buy Now, Pay Later Experiences Could Lead to Store Card Application [Abstract]

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Buy Now, Pay Later Soars in Europe Amid Regulatory Chatter

(London, UK): Buy Now, Pay Later (BNPL) services continue to see significant growth across the UK and European markets.  Over 19 million UK consumers have used Buy Now, Pay Later (BNPL) services, including 40% of credit cardholders, according to Auriemma Group’s latest issue of Cardbeat UK.

Much of this growth can be attributed to Klarna and Clearpay, which are the top two providers used and preferred by BNPL users.  As of mid-2023, half (51%) of Buy Now, Pay Later users have used Klarna before, while 47% say it is their preferred provider. Use of Clearpay remains notably lower, with one-quarter (24%) of Buy Now, Pay Later users trying the service, and 10% preferring it over other providers. Regardless of the provider, the BNPL experience is overwhelmingly positive for those who have used the service. Over nine-in-ten (91%) BNPL users say they had a positive experience using it (up from 74% in Q4-22).

While expectations of regulation coming to the sector have placed a spotlight on Buy Now, Pay Later practices, discussions have not dampened customer appetite for BNPL. New providers continue to enter the marketplace whilst established players continue to increase their investment and focus on service enhancements. Earlier this month, Klarna confirmed an intention to continue investing in the UK market despite calls for tightened regulation.

Whilst growth continues with the younger generations (54% of credit cardholders under 35 have used at least one BNPL plan), there is increasing evidence that the relevance and appeal of BNPL has broadened. The UK Finance Payment Market Report found that the percentage of pensioners now using BNPL services doubled in 2022 compared to the previous year.

“UK banks and traditional lenders are beginning to recognise that BNPL is here to stay as a way for consumers to pay,” says Simon Cottenham, Head of International Partnerships at Auriemma Group. “The key for these players is to create a product, value proposition and customer journey which can appeal in this competitive marketplace.”

Similar trends are being seen in other European markets with Germany reporting 30% growth in BNPL use in the last year. Around one-quarter of consumers in Europe are believed to have made a purchase using BNPL with annual growth rates forecast in the 20%-40% range by most industry observers.

Auriemma Group will continue to monitor this space closely in upcoming Cardbeat studies and within its Customer Service Roundtable groups.

Survey Methodology

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma in July 2023, among 80o+ adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

About Auriemma Group

For nearly 40 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or call Jaclyn Holmes at +44 (0) 207 629 0075.

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