Will Buy Now, Pay Later Replace Credit Cards?

Thu, Sep 11, 2025, 12:17 PM 4 min read

Buy Now, Pay Later (BNPL) services have become more popular in recent years. In fact, many customers using BNPL services enjoy the setup so much that they plan to phase out their credit cards. While some love BNPL, others can’t imagine this service replacing credit cards.

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It’s impossible to predict the future. But it seems unlikely that BNPL services will completely replace credit cards in the future. We explore how BNPL is changing the financing landscape for shoppers below.

In recent years, BNPL services have burst onto the scene as a way to make purchasing something attainable. You’ll find BNPL platforms built into many of your favorite shopping websites, often embedded in the checkout cart to make the purchase feel more affordable.

Many of these services break up your purchase into multiple installments, which you’ll often pay as your next paychecks come in. Sometimes, these smaller payments don’t come with interest attached. But if you miss a payment, you’ll often face interest charges.

With so many Americans struggling to make it paycheck-to-paycheck, the ability to break up the cost of a purchase into smaller increments is undeniably attractive.

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As BNPL services entered the scene, many consumers started to take advantage of the option.

According to a recent survey from C+R Research, 38% of BNPL users claim they plan to eventually replace their credit cards with these services. Plus, 56% of those surveyed said they prefer using BNPL to credit cards.

The survey found that the top reasons for using BNPL services over a credit card included ease of making payments, more flexibility on repayments than credit cards, an easy approval process, and little to no interest charges.

For those with limited credit, BNPL services offer a way to finance purchases in a way that works for their budget without any need to apply for and obtain a credit card. Additionally, the appeal of breaking up the cost of a purchase into manageable payments without interest likely brings many customers to this option.

Although the use of BNPL services is on the rise, it seems unlikely that these services will ever completely replace credit cards.

For starters, BNPL services don’t offer rewards, like cash back or travel points, which many consumer enjoy getting from their credit cards.