Grocery use is nearly universal among users of the four leading BNPL providers, ranging from 87% to 96%.
Food delivery shows a 15-point spread, from 66% to 81%, leaving room for providers to capture more frequent spending.
Home services produce the widest gap: 60% of PayPal Pay Later users report BNPL use in the category, compared with 49% of Affirm users, 42% of Klarna users and 39% of Afterpay users.
The buy now, pay later (BNPL) wallet is crowded, and grocery purchases show just how much the leading providers already overlap.
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Between 87% and 96% of users associated with Affirm, Afterpay, Klarna and PayPal Pay Later report using BNPL for groceries, according to PYMNTS Intelligence’s “Beyond Pay in 4: How BNPL Providers Compete for First Choice.” Restaurant use is similarly broad, ranging from 81% to 88%.
The tighter numbers in those categories contrast with much wider gaps elsewhere. Food delivery and home services, in particular, separate the customer bases and show where providers have room to capture a larger portion of spending from consumers who already use BNPL.
Provider use overlaps. Affirm reaches 50% of BNPL users, Afterpay 48%, Klarna 47% and PayPal Pay Later 41%, and the report says most consumers use two or more providers. A consumer’s Pay Later wallet, in other words, can contain several options for different purchases.
Eighty-one percent of Klarna users and 80% of PayPal Pay Later users report BNPL use for food delivery.
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