Why Gen Z is embracing BNPL over credit cards, and how brands can design cobrand programs that win their loyalty.
Here’s something that should make every credit card executive sit up straight: as of 2025, 56% of Gen Z consumers say they actively prefer buy now, pay later over credit cards. Not just during the holidays. As a standing preference. Nearly 40% use BNPL weekly or more frequently. For a payment form that barely existed a decade ago, that’s not a trend. That’s a migration.
Before you draft the memo about Gen Z abandoning credit forever, let me offer a different read. Gen Z isn’t anti-credit. They’re anti-bland-credit. And right now, the market isn’t giving them enough reasons to feel differently.
Let’s be clear: Gen Z is using credit cards. According to TransUnion, 84% of Gen Zers aged 22–24 carry at least one credit card. In 2025, average balances climbed to $2,990, and they’re holding about 1.5 cards each. So, this isn’t a generation walking away from the product entirely.