Buy now, pay later (BNPL) solutions are quickly gaining adoption as consumers look for new financing options and merchants aim to drive sales, according to a recent posting by market research firm Insider Intelligence. Over one-third of U.S. consumers have used a BNPL service—and the solutions have widespread adoption, considering over 20 percent of consumers in each listed age group have used a BNPL service, Insider Intelligence reported in its emarketer bulletin. The company noted that usage of buy BNPL services has soared across generations in the U.S., especially among Gen Z. These financing solutions will have more than 45 million U.S. users in 2021, and that figure will top 76 million in the next four years. In 2025, over 40 percent of millennials and Gen Zers will make use of a BNPL service at least once that year, according to Insider Intelligence.

The company predicts that BNPL will continue its meteoric rise this holiday season: Nearly half (45.1 percent) of users plan to pay with BNPL this holiday season, according to Cardify. These customers, who are likely seeking less risky payment flexibility, may replace some of their card use with BNPL—giving issuers like Amex and Citi that offer installment options impetus to market them heavily this season.