Buy now, pay later brands

Buy now, pay later brand rankings in the U.S.

With a brand awareness of 90 percent, PayPal is in a league of its own in the U.S. BNPL brand landscape. However, its major competitors, including Affirm, Afterpay, and Klarna, are aiming for the top spot with a loyal customer base and decent brand recognition.

The increased cost of living has prompted consumers to look for new ways of online payments to give their finances some breathing space. Various companies, such as PayPal, Klarna, and Afterpay, have started to offer Buy now, pay later options to their customers and have already gained millions of downloads

Insights

PayPal is the most recognized BNPL brand, with 90 % brand awareness
While well-known, Affirm has potential in usage share
PayPal and Affirm have the most loyal customers

Brand awareness

PayPal leads the Buy now, pay later awareness ranking in the U.S.

While it may have entered the market relatively late, PayPal has made significant inroads in the Buy Now, pay Later landscape. The digital payment provider started offering this service in late 2020 and is currently the most well-known Buy now, pay later provider. Affirm, which has been in the BNPL market since 2014, takes the second place on this ranking, closely followed by Afterpay and Klarna.

Brand usage

PayPal tops the usage ranking

Not only does PayPal hold the top spot in the awareness ranking, but it is also the most used Buy now, pay later brand in the United States, with a usage share of 51 percent among consumers who know the brand. Other frequently used BNPL providers in the U.S. include such well-known names as Afterpay, Klarna, and Affirm.

Brand loyalty

PayPal edges out competitors

The Buy now, pay later market is budding with new players. Consumers are spoiled for choice when it comes to picking their favorite brand which makes it harder for companies to retain their existing bunch of customers. Some brands, however, are more successful at that than others. As our data shows, PayPal has the most loyal customers among BNPL brands in the United States, followed by Affirm, and Afterpay. Swedish payment provider Klarna is another notable brand on our list that can count on its existing customers coming back.

Published November 23, 2023

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