As Buy Now, Pay Later Products Gain Popularity, One Generation Says “No, Thanks”

Buy now, pay later products extend convenience to customers seeking a purchasing tool that allows them to pay for an item over time without incurring interest. The worldwide value of the BNPL market surpassed $37 billion in 2024, and it’s estimated to have a value of more than $167 billion by 2032. 

Financial institutions are always seeking to offer products and services that will bring younger customers through their doors. Logic dictates that younger customers have more years of life ahead of them than their senior counterparts. And switching banks can be such a confusing process — as evidenced by the abundance of detailed bank-switching guides available online — that even dissatisfied customers may choose to stay with their bank for life.

A financial institution that can woo a consumer who’s in high school or college with a rewards checking account or innovative payment tool can grow with the customer over time, eventually advising them to add more profitable products like credit cards, mortgages, and investment accounts to their portfolio. 

Buy now, pay later offerings can help banks attract younger consumers in the second half of the 2020s. At the very least, institutions that don’t offer a BNPL product may be viewed as being technologically inferior to those that do offer one.

Buy now, pay later tools are particularly popular with younger generations.

Millennials — the oldest of whom are now in their 40s — use BNPL more than individuals from any other age group.

Nearly 18% of millennials report having an active BNPL account, and more than 12% of the cohort that preceded them, Generation X, have active BNPL accounts, according to research PYMNTS Intelligence compiled from a survey they issued in late 2024.

Even Generation Z — the youngest age group included in the survey — is using BNPL products. Nearly 10% of that age group report having an active BNPL account.  But one generation lags far behind the rest when it comes to using buy now, pay later products: Only 4.5% of baby boomers and seniors report having an active BNPL account.

The most recent BNPL choice comes from financial technology company Block, which offers an assortment of services including the digital wallet Cash App. It recently added its buy now, pay later (BNPL) product to select Cash App debit cards. Block’s BNPL offering is called Afterpay and — similar to popular BNPL products from Klarna and PayPal — it allows users to pay for a purchase over time in four interest-free installments.

“We are rolling it out to new customers after a year of strong testing,” Block’s Chief Financial Officer Amrita Ahuja said during a recent company webcast. “We see this product as another way for customers to manage their money and to drive increased spending through the Cash App card.” 

Baby boomers are often considered to be history’s wealthiest generation. A number of favorable economic conditions — including affordable housing markets, strong economies, and surging stock markets — allowed baby boomers to accumulate wealth as the decades rolled by. 

Federal Reserve data valued baby boomer assets at more than $84.5 trillion in 2024, dwarfing that of both Generation X and millennials, who held approximately $46.8 and $22.7 trillion in assets in 2024, respectively.

Though baby boomers and seniors have different purchasing behaviors than younger generations, they still need tools to help them transact with ease. The authors of the PYMNTS research offer that “baby boomers and seniors are mostly happy to use the credit that they have” and aren’t seeking new payment tools. So what credit products do they have?

Baby boomers and seniors lead all generations when it comes to owning credit and store cards. More than 77% of baby boomers and seniors reported owning an active credit card, and more than one-third reported having an active store card. 

We checked in with Joosep Seitam, Co-Founder of Icecartel and an expert in eCommerce and digital marketing. Seitam told us of ways that financial institutions can win the trust and business of baby boomers.

“Baby boomers enjoy physical rewards,” Seitam said. “Offering straightforward cashback, discounts, or loyalty programs can cater to their enjoyment of tangible value.”

Payment fraud is prevalent in the U.S., and credit card fraud was the leading cause of identity theft through 2024’s first three quarters. Seitam told us that baby boomers place a strong emphasis on security. Robust fraud protection tools and comprehensive customer service can give baby boomers confidence to try payment products they haven’t used before.

“Although the majority of boomers are technology-savvy, they prefer simple-to-use digital products,” Seitam told us. “Simple online account management and secure payment options will bridge traditional habits with modern conveniences. Targeted marketing that responds to their individual needs, like customized offers or one-on-one customer service, may make them feel understood and valued.”

The wealth of baby boomers — and their partiality for credit cards — suggest that financial institutions shouldn’t ignore them when seeking to grow revenues. Though it may be more difficult to acquire a baby boomer customer, the rewards may be worth the effort, especially when cross-selling opportunities exist.