Banks Rush Into Buy Now, Pay Later as Consumer Use Surges
Writer: Lucy Lazarony
Editor: Lillian Guevara-Castro
Reviewer: Adam West
Key Takeaways
- Thirty-seven percent of consumers used Buy Now, Pay Later to make a purchase in the past 90 days, according to JD Power.
- Custom Pay with Bank Of America allows customers to convert a credit card purchase into a structured payment plan.
- Chase Pay In Four allows debit card purchases of $50 to $400 to be split into four, equal, interest-free payments over an eight-week period.
Major banks are responding to the popularity of Buy Now, Pay Later shopping with credit cards and even a debit card that allows shoppers to pay for their shopping over time. How popular is BNPL with consumers?
According to a survey by JD Power released in March, 37% of all consumers and 50% of consumers under 40 used BNPL to make a purchase in the past 90 days.
And while JD Power found that fintech brands were driving the surge in BNPL adoption, bank brands had higher levels of customer satisfaction. J.D. Power found bank-branded BNPL services had higher average satisfaction scores than fintech BNPL brands.
Younger Consumers Continue to Drive BNPL Adoption
Source: J.D. Power 2026 Buy Now, Pay Later Satisfaction Study
“The 2026 study shows sustained and rapid growth of BNPL, driven largely by increased use of services offered by fintech providers," said Sean Gelles, Senior Director of Banking and Payments at JD Power.
"When it comes to overall satisfaction, however, the traditional financial institutions are delivering a much more positive user experience. This signals an enormous opportunity for traditional financial institutions. Customers are looking for BNPL solutions from the brands they already know and trust.”
Custom Pay With Bank of America
On June 10, Bank of America introduced a new way Bank of America customers can pay off their credit card purchases. Eligible customers can convert a qualifying BofA credit card purchase of at least $100 into a structured payment plan called Custom Pay Plan through the bank’s mobile app or online banking.
Payment terms range from three to 18 months. Customers can view the total cost, including a monthly payment fee, monthly payments, and the repayment schedule at the time the Custom Pay Plan is created.
Chase Pay In Four
Chase Pay In Four allows debit card purchases of $50 to $400 to be split into four, equal, interest-free payments over eight weeks. JPMorgan Chase customers have seven days after making an eligible debit card purchase to open a Chase Pay In Four plan.
There is no payment due at the plan’s opening, but there is a $5 fee for late and missed payments. The plan is managed in the Chase Mobile App or on the Chase website.
Citi Flex Pay
Citibank offers Citi Flex Pay, which splits credit card purchases into fixed monthly payments allowing customers to pay over time. Citi customers get to choose a fixed monthly payment that works best for them. There is no application or credit check.
Here’s how it works. With Citi Flex Pay, a customer can choose a purchase of $75 or more in the Citi Mobile App or Citi Online for Flex Pay. Next, they select a payment plan and a new fixed monthly payment is then added to the minimum amount due.
"Customers are looking for BNPL solutions from the brands they already know and trust." — Sean Gelles, J.D. Power
Citi customers also may use Citi Flex Pay on Apple Pay and at merchants including American Airlines, Amazon, and Citi Travel.
U.S. Bank Split World Mastercard
U.S. Bank allows its U.S. Bank Split World Mastercard cardholders to pay later on the purchases they make. All purchases of $100 or more are divided into three payments and placed in a payment plan to be paid back over three months with no payment fee.
Customers who want a longer repayment period can choose a six-month plan or a 12-month plan. These larger plans come with fixed monthly plan fees.
