BNPL for merchants: when does offering installment payments make sense?

manage their purchases. According to our 2026 survey, “Payment Methods: The Ultimate Decision”, 32% of Spaniards use BNPL regularly or occasionally. However, its adoption varies considerably depending on age, purchase category and transaction amount.

For merchants, offering installment payments should not simply be a response to the growing popularity of BNPL. The decision should depend on whether this payment method suits their customer profile, average ticket value and product or service offering.

When does it make sense to offer BNPL? In this article, we explore who uses Buy Now, Pay Later most frequently, which sectors see the highest adoption rates and what merchants should consider before adding it to their payment strategy.

Which sectors use BNPL the most?

BNPL adoption varies across sectors. Our survey shows that this payment method is particularly common in categories involving higher-value purchases.

Technology and electronics lead the way, with 66%, followed by home appliances and household equipment (57%) and travel bookings and experiences (34%).

These findings show that installment payments are particularly relevant for purchases that may involve a significant upfront expense. In these cases, spreading the cost over several payments gives consumers another way to manage their spending.

BNPL user profile

Beyond the sector, the customer profile also plays an important role. Age, in particular, is one of the factors showing the greatest differences in BNPL adoption.

Generation Z, aged 18 to 28, leads the use of installment payments, with 56% using this option regularly or occasionally. Among Millennials, aged 29 to 44, the figure falls to 32%.

Meanwhile, Generation X, aged 45 to 56, records 26%, while Baby Boomers, aged 57 to 76, reach 28%.

By contrast, gender differences are considerably smaller. 33% of men say they use installment payments regularly or occasionally, compared with 30% of women.

Overall, the findings indicate that BNPL is more widely used among younger consumers and in certain categories associated with higher-value purchases.

4 signs that BNPL could be a good fit for your business

Our survey findings provide a useful starting point for assessing whether BNPL for merchants aligns with a business’s characteristics and customers’ needs.

1. Your average ticket value is high

According to our survey, technology, electronics and household equipment are the categories where financing is most commonly used. These purchases often involve a significant financial outlay.

Therefore, businesses with a high average order value (AOV) may benefit from offering installment payments, giving customers greater flexibility when making a purchase.

2. You sell products that require careful consideration

Not all purchases involve the same decision-making process. Buying an electronic device, replacing a household appliance or booking a holiday may require more planning than making a lower-value purchase.

In a context of inflation and increasing pressure on household budgets, the upfront cost can play a greater role in purchasing decisions.

For some consumers, the ability to spread payments over time can make it easier to manage their spending without paying the full amount at once.

For merchants, offering both immediate payments and installment payments helps accommodate different customer preferences and financial circumstances. This can be particularly relevant in categories where the transaction amount may influence whether a customer completes a purchase.

3. Your customers are young or familiar with online shopping

The customer profile is another important factor to consider. According to our survey, more than half of Generation Z consumers (56%) use installment payments regularly or occasionally.

Generally speaking, this generation is particularly familiar with digital environments, more willing to try new payment methods and tends to have lower purchasing power.

The difference compared with other age groups is significant. Therefore, businesses primarily targeting younger consumers may find that offering BNPL can help improve conversion rates.

4. The upfront cost may be a barrier to purchase

Finally, merchants should consider how much the purchase amount may influence a customer’s decision.

When certain products or services involve a significant upfront expense, offering installment payments allows customers to spread the cost instead of paying the full amount at checkout.

What do customers look for when choosing installment payments?

Understanding who uses BNPL is important, but so is knowing why consumers choose installment payments.

According to our survey, the three main reasons are:

• Splitting purchases into interest-free installments: 71%.
• Avoiding the financial impact of paying the full amount upfront: 42%.
• Managing their budget more effectively: 30%.

These findings suggest that interest in Buy Now, Pay Later is primarily driven by flexibility and the ability to manage spending.

For merchants, understanding these motivations provides valuable insight into what customers expect from this payment method. It is not simply about paying later, but about having different ways to manage the cost of a purchase.

When might offering BNPL not be a priority?

Although installment payments are gaining attention, not all consumers want or need to finance their purchases.

Our survey also explores why some consumers prefer not to use this option.

63% of consumers who do not use installment payments prefer to pay the full amount immediately. Meanwhile, 36% avoid this option because they are concerned about potentially high interest rates or fees.

As a result, offering BNPL for merchants may be less relevant for businesses with low average order values or customer profiles that do not match the groups showing higher adoption rates.

Furthermore, these findings highlight the importance of transparency in BNPL terms and conditions.

Clearly displaying payment schedules and any associated costs helps customers understand the conditions before choosing how to pay.

How can merchants integrate BNPL without complicating the checkout?

An online payment platform to manage multiple payment methods

Integrating BNPL does not mean replacing existing payment methods. Instead, it means expanding the options available at checkout.

The key is to offer BNPL alongside card payments, digital wallets and other payment options that are relevant to each customer profile, while maintaining a simple and transparent payment experience.

To achieve this, merchants should clearly display the terms, payment schedules, installment amounts and any associated fees for each option.

This allows consumers to choose their preferred payment method without adding unnecessary steps to the purchasing process.

Ultimately, BNPL can be part of a broader payment strategy, but its implementation should reflect the characteristics of each business, including its customer profile, average order value and the products or services it offers.

At PaynoPain, we help merchants integrate multiple payment methods into a single online payment platform and tailor the payment experience to their business needs.

Contact our team to discover which payment solutions could be the best fit for your business.