The trend: Brands are increasingly leaning into buy now, pay later (BNPL) to nudge consumers reluctant to spend on big-ticket or everyday purchases.

• Lowe’s now offers Affirm on its website and app, allowing customers to split purchases into biweekly or monthly payments, with some eligible for 0% APR.
• Airbnb expanded its Reserve Now, Pay Later option for international trips after launching it in the US last summer; it says the feature has helped accelerate nights and experiences booked in the US.
• Expedia Group recently made Affirm the exclusive BNPL provider for lodging and packages across its US flagship brands—Expedia, Hotels.com, and Vrbo—offering eligible travelers 0% APR three- or six-month plans.

BNPL growth isn’t limited to big-ticket purchases. Zip now lets US consumers split payments into two installments rather than the traditional four, aiming to capture shoppers using BNPL for everyday essentials.

Why is this happening? Consumer use of BNPL is rising, driven by two different groups of shoppers.

• Consumers without access to traditional credit are flocking to fintechs to finance essentials, from low-ticket items like groceries to major expenses like rent.
• More middle class shoppers are using installments to budget big purchases too expensive to carry on monthly credit card bills: think home repairs, and appliance purchases.

It’s also become easier to use BNPL. Affirm and Klarna have launched popular BNPL-enabled debt cards in the US, and integrations with Apple Pay and Google Pay are reducing checkout friction—reversing BNPL’s early clunky QR scans for in-store retail settlements.