As BNPL Rises in Popularity, Consumers Are Missing Payments; Zip Partners with Gift Platform Nift

Some 76% of consumers in the United States have taken out buy now, pay later loans, but 49% have missed a payment, while 67% of BNPL users are paying on multiple BNPL loans at once. That’ all according to a recent study from LegalShield.

The trend comes at a time when debt delinquency among U.S. households climbed to 4.4% during the second quarter of 2025, the highest level since the first quarter of 2020, according to the New York Federal Reserve. The delinquency rate among U.S. households has been rising each quarter since late 2022, according to the New York Fed.

LegalShield, a subscription service that provides access to legal advice and services through a network of attorneys, surveyed 2,018 U.S. consumers.

“It’s not surprising to see so many missed BNPL payments as consumer delinquencies are going up in general,” says Ariana-Michele Moore, a strategic advisor for Datos Insights. “People tend to lose track of what they sign up for [such as a BNPL loan].”

Moore adds that one way for BNPL providers to avoid missed payments is to provide consumers with a reminder that payment is due.

Consumers’ willingness to take on more debt through multiple BNPL loans is becoming a red flag, as some 62% of respondents can have as many as five BNPL loans open at the same time, the study found. Carrying so many loans at once is causing many consumers to become overextended, LegalShield says.

“BNPL loans are available at the point of sale and used to finance a purchase, so a consumer can use a BNPL loan at one merchant one day and at another the next day, which makes it easy to quickly drive up the number of loans they take out,” says Moore.

Recent data from Datos shows that among Gen Zers, 44% have used a BNPL one to two times, 35% have used the loans three to five times, 10% have used them five to 10 times, and 11% have used them more than 10 times.

Missing BNPL payments is becoming an unforeseen trap for consumers when it comes to their creditworthiness, as 38% of respondents are unaware that credit-scoring agency The Fair Isaac Corp., known as FICO, has begun factoring BNPL data into its scoring models.

Missed BNPL payments can negatively affect consumers’ credit scores, says Moore “Younger generations, such as Gen Zer’s, don’t necessarily know how the FICO score works,” she adds.

While missed payments are a growing concern for BNPL lenders, some 45% of users have faced legal or contractual disputes, 62% have reported billing errors, and 60% say they have been forced to pay even after returning items, the LegalShield study says.

“BNPL has evolved from a simple payment option into a complex financial tool that, without proper understanding and legal guidance, can gradually become overwhelming for families,” says Rebecca A. Carter, an attorney with the law firm of Friedman, Framme & Thrush, PA, which is a member of the LegalShield network, in a statement. “Most people don’t realize they have legal rights when disputes arise, and that’s where professional advocacy becomes crucial.”

In related news, BNPL provider Zip.Co has partnered with Nift, a technology company that enables enabling consumer platforms and publishers to offer high-value thank-you gifts to their customers.

The integration of Nift into the Zip platform allows Zip to feed consumers relevant gift options based on their personal preferences and interests upon financing a purchase using Zip.

“Adding Nift to our checkout experience helps our customers discover brands that matter to them, while getting extra value from every purchase,” Joe Heck, U.S. chief executive for Zip, says in a statement. “It’s another way we’re making their money work harder.”