In April 2026, we analyzed 5,600 ChatGPT responses across nine financial services categories to compile the AI Visibility Index.

In Q1 2026, we analyzed 5,600 ChatGPT responses across nine financial services categories to compile the AI Visibility Index.

Issuers hold the advantage of existing credit lines and post-purchase flexibility compared to fintechs, but only for existing credit cardholders, per JD Power.

Consumers find credit management within card options favorable to fintechs.

Rising net charge-offs raise concerns about the Aussie platform’s consumer financial health.

Targeting consumers trying to finance groceries and bills, Zip underscores the BNPL use divide.

Rent installment loans push BNPL into a high-stakes niche as providers chase more spend per user.

Affirm released a bevy of data regarding its user base and loans in a letter addressed to senators. Affirm’s data suggests a tiered system may be emerging in BNPL, where different providers are serving different slices of creditworthy customers. However, the income range of US adults seeking BNPL loans demonstrates widespread popularity of alternate credit, a key concern for issuers who risk losing credit card customers to these alternative loans. They need to address that risk with competitive, rewards-eligible card-linked installment loans.

Afterpay partnered with a slate of new merchants to increase flexible financing options for consumers ahead of the holidays, per a press release. New partners include Thursday Boots, Diesel, and SP5DER Worldwide. Block is betting on its ecosystem effect raising the value of all of its products. However, major partnerships are still needed to rocket a BNPL product to high use, like Klarna’s integrations with Walmart.

Block will pilot a real-time credit scoring model called Cash App Score, per a press release. Users’ Cash App Scores are based on financial behaviors within the Cash App ecosystem: deposit frequency, spending habits, savings activity, and repayment history, and other metrics. Cash App’s micro loans have acted as a proof of concept for its proprietary underwriting model, which it now likely wants to expand into larger-value (and more lucrative) lending. Giving consumers a visible—and highly manipulable—score can boost loan value and overall engagement.

Klarna debuted a two-tiered membership program, per a press release. larna’s second stab at a rewards membership program may prove more fruitful. This places the onus on competitors like Affirm, Sezzle, Cash App Afterpay, and PayPal to respond in kind. Offering better rewards is one way to stand out: PayPal’s Pay Later offered an untouchable 5% back during a holiday promotional period. While platforms could mimic Klarna’s membership program, BNPL providers could also expand promotional 0% interest windows, like Affirm’s latest offer, to sway young consumers who view installment loans as safer than revolving credit.

Affirm called for a cap on late fees in the buy now, pay later (BNPL) industry, per the Financial Times. BNPL platforms have an opportunity to gain customer loyalty through advertising—and practicing—transperant lending practices. Alternative lenders that operate with clear terms can get more consumers to select BNPL financing over revolving credit, especially when young consumers choose the payment method out of perceived safety over credit cards.

PayPal will make its Pay Monthly installment loans available in-store in the US ahead of the holiday season. For competing BNPL providers, PayPal’s rewards structure now far outstrips what most of them offer. Competitors should consider more strategic partnerships with desirable Gen Z and millennial brands to strike directly at the root of where young consumers are shopping, and cut deals with those merchants for more favorable cash back rewards.

BNPL payment value and user growth will decelerate in the coming years as the industry matures. But BNPL providers still have a big opportunity to grow their share of retail sales.​

The news: Zip partnered with Nift to bring AI-powered “thank-you” gifts to its checkout flow, per company announcements. The integration brands send Zip users tailored offers after making a purchase, aiming to strengthen loyalty while creating new ad inventory. Our take: Zip’s tie-up with Nift illustrates how fintechs are positioning themselves not only as payment providers but also as media channels. The average BNPL users will spend more than $1,600 a year by 2029, per our forecast. As spend per user climbs, Nift’s native, post-checkout placements with conversion rates up to 10% will be especially appealing to both Zip and brands.

The news: More than one-third (38%) of parents are stressed about affording back-to-school items, per Zip’s back-to-school survey. Our take: Given the level of strain for parents, BNPL providers have an opportunity to pitch their alternative credit models to overstretched families. Targeted marketing campaigns around back-to-school season and easy opportunities to use installments in store and online through BNPL-enabled cards and partnerships can strengthen spend.

The news: Zip’s total transaction volume (TTV) spiked 30.3% YoY in fiscal 2025 (ended June 30, 2025), driven by momentum in its US business. Cash before taxes, depreciation, and amortization (EBTDA) more than doubled YoY to AUD 170.3 million ($109.38 million), a 147% increase. Total transaction value hit AUD 13.1 billion ($8.42 billion). Transaction volume was up 22.1% YoY to 93 million. Net bad debts decreased YoY to 1.5% of TTV, down from 1.7% in FY24. Our take: Zip’s year-end results reflect the spending strength of US consumers. We forecast US total retail sales to hit $7.513.38 trillion for 2025. By comparison, Zip’s native Australia is only anticipated to crack $356.49 billion in total retail sales this year.

The news: Klarna, Affirm, and Zip will be available as autofill payment options through Google Pay on Chrome for cart sizes of $35 or more. Our take: Increasing the ease and availability of a payment method for US consumers can increase volume for BNPL providers and Google.

This leaves the BNPL industry back at square one in terms of regulation, creating uncertainty for providers

The BNPL provider has made strong inroads in the US but faces steep obstacles in growing its market share