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.

How we got here: BNPL providers are embracing debit cards. For example, Affirm has issued 2 million debit cards as of June 2025—up 600,000 (43%) since January, per PaymentsDive.

Now other FIs are starting to recognize how BNPL can bolster card growth, per 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’s banking customers crave flexibility—and it’s especially important to Gen Zers.