TOP 20 PAY-LATER REPAYMENT DEFAULT RATE STATISTICS 2025

When I started digging into pay-later repayment default rate statistics, I didn’t expect the numbers to reveal such a complicated picture of how people manage short-term credit. On the surface, the default percentages look reassuringly low compared to credit cards, but once you look closer, late payments and financial struggles start to show up everywhere. It’s a bit like when you buy a pair of socks—at first glance they seem simple, but you only realize the hidden wear and tear after you’ve worn them a few times. That’s exactly what’s happening with BNPL: beneath the smooth surface, a lot of stress is quietly building up for everyday consumers. For me, this makes the data more than just percentages—it feels like a reminder of how fragile financial habits really are.

Top 20 Pay-later Repayment Default Rate Statistics 2025(Editor's Choice)

Top 20 Pay-later Repayment Default Rate Statistics 2025

Pay-later Repayment Default Rate Statistics #1: BNPL Default Rate In The U.S.

The U.S. BNPL default rate between 2019–2022 averaged 2%, a figure significantly lower than the 10% default rate seen with credit cards. This statistic demonstrates that while BNPL defaults occur, they are comparatively contained. Providers often emphasize this gap to highlight BNPL as a “safer” repayment model. However, the data reflects aggregate performance and doesn’t necessarily reveal the risks faced by individual consumers. It sets a benchmark for understanding repayment challenges across different forms of credit.

 

 

Pay-later Repayment Default Rate Statistics #2: Overall BNPL Delinquency Rate Below 2%

Industry analysis shows BNPL delinquency rates staying under 2%, lower than the overall consumer debt delinquency of 3.5%. By comparison, credit card delinquency rates stood at 8.8%, further illustrating BNPL’s relative stability. This low rate is often attributed to automatic repayment setups linked to debit cards. However, such systems can mask financial strain, since payments are collected regardless of user stability. The figure gives regulators confidence but also draws caution for hidden debt pressures.

Pay-later Repayment Default Rate Statistics #3: Klarna’s Unpaid Loan Rate At 0.54%

Klarna reported unpaid loans at 0.54% of its total lending in Q1 2025. This represents a small increase from the 0.51% seen the year before. On the surface, this rise appears modest, but at Klarna’s transaction scale it translates into millions in potential losses. The trend highlights how even minor upticks can signal broader consumer repayment stress. It underscores the need for close monitoring of BNPL lenders’ credit risk exposure.

Pay-later Repayment Default Rate Statistics #4: 41% Of BNPL Users Report Late Payments In 2025

A LendingTree survey found that 41% of BNPL users admitted to making a late payment in 2025. This marked a steep increase compared to 34% the year prior. The sharp rise suggests growing repayment struggles as more consumers adopt BNPL services. Late payments carry potential hidden costs, including fees or damaged credit in cases where providers report data. This statistic signals that repayment reliability is eroding despite low official “default” numbers.

Pay-later Repayment Default Rate Statistics #5: 34% Reported Late Payments In 2024

In 2024, 34% of BNPL users had reported at least one late payment. This figure provided the baseline for the following year’s increase to 41%. The steady upward trajectory reveals a trend of worsening repayment reliability. Analysts warn that this could foreshadow higher default levels as usage continues to expand. The data highlights how BNPL repayment stress is compounding year over year.

Pay-later Repayment Default Rate Statistics #6: 40% Late Payment Incidence In 2024 Reports

Industry coverage in 2024 estimated that around 40% of BNPL users had missed or delayed payments. This aligns with consumer surveys showing similar repayment struggles. The figure coincided with rising credit losses reported by providers such as Klarna. It emphasizes that while the official default rates remain low, late payments are common. This divergence creates concern that real risks may be understated in traditional reporting metrics.

Pay-later Repayment Default Rate Statistics #7: 14% Late Payment Rate From SHED Survey

The 2023 Survey of Household Economics and Decisionmaking (SHED) reported that 14% of BNPL users had made at least one late payment. While lower than some self-reported surveys, it still highlights a notable repayment gap. This demonstrates that late payments are not confined to small samples but are systemic. Many affected borrowers are also juggling multiple loans and credit card balances. The number serves as a measured baseline for policymakers assessing BNPL risks.

Pay-later Repayment Default Rate Statistics #8: 5.7% Derogatory Rate Among Young Borrowers

In 2021, borrowers aged 18–24 had a 5.7% derogatory account rate tied to BNPL loans. This was a rise from 5.2% in 2019, showing increasing vulnerability in younger cohorts. Younger users often have thinner credit files, making them more sensitive to repayment lapses. This group represents a key growth demographic for BNPL adoption. The data points to repayment stress being disproportionately felt among new entrants to credit.

 

 

Pay-later Repayment Default Rate Statistics #9: 20% Of Australians Missed A Payment

In 2021, approximately 20% of Australian BNPL users reported missing at least one repayment. With over 10 million users, this represents a significant portion of the population. The figure raised alarms for regulators, prompting Australia to consider stricter BNPL oversight. It shows that repayment problems are not limited to the U.S. market. The statistic demonstrates BNPL’s global repayment risks as adoption scales.

Pay-later Repayment Default Rate Statistics #10: 76% Of Delinquencies Only A Week Late

Data shows that 76% of BNPL late payments were less than a week overdue. This suggests that many missed payments were temporary liquidity mismatches rather than outright defaults. The brevity of most delinquencies helps explain why official default rates appear low. However, it also underscores how frequently consumers brush up against financial strain. The figure provides nuance in differentiating late payments from chronic non-repayment.

Pay-later Repayment Default Rate Statistics #11: Klarna’s Unpaid Loan Rate Was 0.51% Previously

Before rising to 0.54% in 2025, Klarna’s unpaid loan rate stood at 0.51%. This minor increase highlights the gradual trend of repayment pressure. While small percentages seem negligible, they represent millions of dollars in consumer defaults at scale. The change is a reminder that credit risk builds cumulatively. It underscores the importance of tracking these metrics over time.

Pay-later Repayment Default Rate Statistics #12: BNPL Delinquency Vs Credit Card Delinquency

Comparative data shows BNPL delinquency at about 2%, while credit card delinquency reached 8.8%. This difference is often cited as evidence of BNPL’s repayment reliability. Providers argue that linked auto-payments lower the risk of missed payments. However, critics note that the system may mask deeper financial fragility. The statistic highlights the ongoing debate about BNPL’s long-term sustainability.

Pay-later Repayment Default Rate Statistics #13: BNPL Vs Credit Card Default Rates

Between 2019–2022, BNPL defaults averaged 2%, while credit card defaults were closer to 10%. This stark contrast is often used to position BNPL as safer than revolving credit. Yet the narrower repayment horizon of BNPL loans explains much of the difference. Defaults may simply emerge sooner or outside of traditional reporting mechanisms. The statistic demonstrates the need to consider structural differences in loan types.

Pay-later Repayment Default Rate Statistics #14: 63% Of Users Held Multiple BNPL Loans

In 2022, 63% of BNPL users had more than one active loan at the same time. This stacking behavior amplifies repayment risk across accounts. Multiple obligations make it easier for users to lose track of upcoming installments. The statistic highlights a pattern of financial overextension among heavy BNPL adopters. It serves as a warning signal for credit exposure beyond individual loan risk.

 

 

Pay-later Repayment Default Rate Statistics #15: 96% Of Late Payers Showed Financial Constraints

Among BNPL users who reported late payments, 96% displayed at least one financial vulnerability. Indicators included low savings, credit card balances, or limited access to emergency funds. This overwhelming figure suggests that late BNPL payments strongly correlate with financial distress. It counters the notion that most late payments are minor oversights. The statistic underscores the link between BNPL repayment struggles and broader financial instability.

Pay-later Repayment Default Rate Statistics #16: Only 4% Of Late Payers Had No Constraints

Data revealed that just 4% of late-paying BNPL users showed no financial constraints. This small minority highlights how rare repayment delays are in financially stable households. Most late payments stem from broader financial difficulties, not carelessness. This insight reinforces the need for cautious lending practices in BNPL. The figure complements #15 by providing the inverse perspective.

Pay-later Repayment Default Rate Statistics #17: 61% Of BNPL Loans Were To Subprime Borrowers

The CFPB reported that 61% of BNPL loans originated between 2021–2022 went to subprime or deep subprime borrowers. This statistic highlights the concentration of repayment risk among vulnerable credit segments. Subprime borrowers already face higher delinquency rates in traditional credit. The finding shows BNPL companies are heavily reliant on this risky base. It suggests future repayment stress could escalate as usage expands.

Pay-later Repayment Default Rate Statistics #18: BNPL Share Of Unsecured Debt At 2%

For heavy users, BNPL accounted for just 2% of their unsecured debt. Although small in percentage terms, the repayments still add to overall liabilities. This suggests BNPL debt is not dominant but could tip balances in fragile households. Even small amounts of additional credit can increase default probabilities when budgets are stretched. The figure provides context on how BNPL fits into wider debt structures.

Pay-later Repayment Default Rate Statistics #19: BNPL Vs Overall Consumer Delinquency Rates

BNPL delinquency rates hover at under 2%, compared to 3.5% across overall consumer debts. This reinforces BNPL’s comparatively strong repayment profile. However, auto-debit repayment methods may artificially suppress late-payment recognition. The comparison nonetheless demonstrates BNPL’s ability to sustain low delinquencies. It is a key figure regulators track when evaluating systemic risk.

 

 

Pay-later Repayment Default Rate Statistics #20: 30–40% Of Users Report Late Payments Globally

Surveys consistently show that 30–40% of BNPL users report making late payments. This range highlights repayment struggles across different regions and years. Despite official default rates being low, consumer-reported behavior paints a more worrying picture. The divergence suggests risk levels are understated in industry reporting. The statistic calls attention to hidden repayment vulnerabilities behind headline figures.

Final Thoughts On Pay-Later Repayment Default Rate Statistics

Looking at these statistics as a whole, I can’t help but feel both cautious and curious. The official default rates might be low, but the sheer number of late payments tells a more personal story—one about people juggling bills, shifting priorities, and sometimes falling behind. I imagine real individuals behind these percentages, each with their own reasons for leaning on BNPL, whether it’s to make life easier or just to stretch their budget a little further. It leaves me thinking that while the model offers flexibility, it also tests how much pressure someone can realistically handle. For anyone reading this, the stats aren’t just financial trends—they’re a reflection of everyday life, and maybe even a quiet reminder to pause before clicking “pay later.”

Sources

1. https://www.economist.com/finance-and-economics/2025/08/04/buy-now-pay-later-is-taking-over-the-world-good

2. https://www.richmondfed.org/publications/research/economic_brief/2025/eb_25-03
   

3. https://www.sfchronicle.com/personal-finance/article/klarna-losses-buy-now-pay-later-20335822.php

4. https://www.ainvest.com/news/rising-risks-buy-pay-bnpl-consumer-credit-2508/

5. https://files.consumerfinance.gov/f/documents/cfpb_buy-now-pay-later-market-trends-consumer-impacts_report_2022-09.pdf

6. https://www.unsw.edu.au/newsroom/news/2022/09/does-buy-now--pay-later-still-work-if-costs-keep-rising--
   

7. https://www.kansascityfed.org/research/economic-review/financial-constraints-among-buy-now-pay-later-users/

8. https://www.fastcompany.com/91340983/what-klarnas-recent-report-says-about-u-s-consumers-finances

9. https://tradetreasurypayments.com/posts/the-bnpl-time-bomb-how-buy-now-pay-later-is-rewiring-american-debt