The news: US adults are turning to installment solutions to navigate the cost of living, especially for those who already feel financially stressed, per an April Gallup poll.

How we got here: Income has become the chief determinant of buy now, pay later (BNPL) use among Americans; Gallup found no statistically significant difference on the basis of age, education, or gender.

• 37% of US adults earning under $48,000 frequently or occasionally use installments.
• Comparatively, 29% of middle income ($48,000 to $89,000) and 21% of higher income ($90,000+) consumers use BNPL.

Why this matters: Frequency of BNPL use is becoming tethered to economic fragility.

Forty-six percent of US adults who use BNPL frequently/occasionally do not believe they have enough money to live comfortably—three times the rate of those who do believe they have a comfortable income.

• 57% of US adults who are “very worried” and 52% who are “moderately worried” about paying their minimum monthly credit card bill used installment plans for online orders frequently/occasionally.
• By comparison, only 32% of US adults who are “not too worried” and 11% who are “not worried at all” chose installment plans for ecommerce order frequently/occasionally.

Implications for payment providers: Consumers feeling buried under the weight of credit card debt are turning to BNPL to close the gap.

To attract consumers trying to avoid revolving debt but who still need access to financing, BNPL providers can highlight the attractiveness of a BNPL-enabled debit card, like interest-free installments and no hard credit pulls, over revolving credit for financing larger purchases.