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Buy Now, Pay Later Moves Into Rent and Utility Bills as Household Budgets Tighten

Aug 18

3 min read

Buy now, pay later is moving from a way to finance purchases to a tool for managing everyday household expenses.

Person using a laptop to manage rent and utility bill payments at home.

Buy now, pay later services are moving beyond electronics, clothing and other discretionary purchases as consumers increasingly use installment financing for everyday expenses, including groceries, rent and household bills.

BNPL providers originated nearly $157 billion in consumer credit products in 2025, up from approximately $116 billion in 2024, according to Federal Reserve estimates cited by CNBC. A July 2026 LendingTree survey of 2,000 consumers found that 44% expected to use BNPL within the following six months.

The shift is changing the role of BNPL in household finances. What began primarily as a way to spread the cost of purchases is increasingly being used to manage the timing of essential payments.

From Purchases to Household Bills

The expansion reflects a broader demand for short-term payment flexibility. Rent, utilities, groceries and healthcare can create large expenses at different points during the month, particularly for households whose income does not arrive on the same schedule.

Rent has become one of the most prominent areas of expansion. Affirm, one of the largest BNPL providers, has partnered with financial technology company Esusu on a pilot allowing eligible renters to divide their rent into two biweekly, interest-free payments. The program is subject to approval and is currently available through participating properties.

The model is not entirely new. Companies including Flex and Livble have offered rent-payment products for several years, allowing renters to spread a monthly housing payment across multiple installments.

A New Role for BNPL Providers

The move into recurring expenses represents a broader expansion of the BNPL model. Providers are increasingly competing not only for retail transactions but also for recurring financial activity.

Utility payments are another emerging category, with fintech companies developing products designed to help consumers divide or advance payments for recurring household bills.

For providers, these services create opportunities to build longer-term relationships with customers. For consumers, the appeal is largely about timing: dividing a large monthly expense can make it easier to align payments with regular income.

Affirm's partnership with Esusu illustrates this approach. Under the pilot, eligible renters can have their full rent paid upfront and repay it in two equal, biweekly installments without interest or loan fees.

Credit and Payment Flexibility

Some rent-focused services also connect payment activity with credit-building tools. Esusu, for example, reports eligible on-time rent payments to credit bureaus, giving renters an opportunity to establish or strengthen their credit history through regular housing payments.

That feature adds another dimension to the growth of payment-splitting services. Rather than simply financing a purchase, some platforms are attempting to combine payment flexibility with broader financial products.

A Growing Credit Market

The expansion comes as the overall BNPL market continues to grow. According to the Federal Reserve estimates cited by CNBC, the value of consumer credit products originated through BNPL providers increased by more than one-third between 2024 and 2025.

At the same time, installment products are becoming more varied. The Protect Borrowers research cited in industry reporting found that interest-bearing installment loans represented more than 37% of annual BNPL issuance in 2026, compared with a substantially smaller share in 2021.

The distinction matters because traditional four-payment, interest-free BNPL products are increasingly being joined by longer or interest-bearing forms of financing.

Where the Market Goes Next

BNPL's expansion into rent, utilities and other recurring expenses suggests that installment financing is becoming part of how some consumers manage monthly cash flow rather than simply how they pay for individual purchases.

For financial technology companies, the opportunity is significant: recurring household expenses provide a much larger potential market than discretionary retail spending alone.

The next stage of the market will likely depend on how effectively providers balance convenience, affordability assessments and transparent pricing as BNPL becomes increasingly embedded in everyday household finances.

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