The Buy Now, Pay Later Trend and Why It’s Relevant to the Home Improvement Industry
A New Era of Consumer Behavior
What is Buy Now, Pay Later (BNPL) and why is it relevant to the home improvement industry?
Buy Now, Pay Later (BNPL) is a payment method that allows consumers to split purchases into smaller installments over time. While commonly used for everyday purchases, its popularity reflects a broader shift toward payment flexibility—something homeowners now expect when making larger home improvement decisions.
Recent data illustrates how deeply payment flexibility has become part of everyday life. More than 56% of U.S. consumers used a BNPL service in the year ending October 2024 (eMarketer). An April 2025 survey of 2,000 U.S. consumers aged 18 to 79 found that nearly half of adults have used a BNPL service (Forbes).
These numbers reflect a larger story about homeowner financial behavior—one worth understanding in full. [Explore additional consumer financial trends shaping home improvement decisions.]
Why is BNPL changing consumer expectations for large purchases?
The rise of BNPL is changing consumer expectations by normalizing installment-based payments for everyday purchases. As a result, homeowners increasingly expect similar flexibility when making larger financial decisions like home improvement projects.
If consumers are financing groceries, furniture, and vacations, it's only natural that they expect flexible payment options for major home improvements—whether that's a new roof, kitchen renovation, or HVAC system replacement.
For homeowners, financial comfortability isn't just about total project cost; it's about how a project fits into their monthly cash flow. A $15,000 roof or $10,000 HVAC upgrade can feel more manageable when presented as a $200 monthly payment instead of a large upfront expense.
This shift represents both a challenge and an opportunity. Those who fail to offer financing may lose jobs to competitors who do. On the flip side, those who embrace payment flexibility can position themselves as customer-focused, modern, and better equipped for success in a competitive market.
Why Do Contractors Offering Financing Win More Jobs?
Contractors who offer financing win more jobs because it allows homeowners to manage project costs through monthly payments and aligns with growing expectations for flexible payment options.
Presenting flexible payment options early in a proposal helps homeowners see how a project can fit within their budget and reduce sticker shock.
Flexible payment options also allow homeowners to consider enhancements such as premium materials, design upgrades, or energy-efficient systems without paying the full amount upfront.
This flexibility helps homeowners choose solutions that best meet their needs and often leads to greater project satisfaction. In a competitive bidding process, the contractor who offers financing often wins the job—not because their price is lower, but because they’ve made the investment manageable and realistic within the homeowner’s budget.
Buy Now, Pay Later: A Long-Term Trend Home Improvement Contractors Can’t Ignore
Is the BNPL market growing?
Yes, the Buy Now, Pay Later (BNPL) market is growing rapidly. Fortune Business Insights projects the global BNPL market will grow from $44.89 billion in 2025 to $286.02 billion by 2034. This surge shows that flexible payment options aren’t just a short-term trend—they’re here to stay.
As home prices, material costs, and labor rates continue to rise, homeowners will keep seeking ways to manage expenses without delaying critical improvements. Contractors who consistently offer financing are better equipped to meet those evolving needs and maintain healthy business growth.
Is Offering Home Improvement Financing Easy?
Yes, offering financing is easier than ever. Modern, qualified financing partners provide fast credit decisions, digital applications, and user-friendly tools that integrate directly into proposals.
Some contractors hesitate to bring up financing, assuming it complicates the process or that their customers can pay cash. The truth is, offering flexible payment options is no longer an add-on; it's an expected part of the modern customer experience. By normalizing financing in every conversation, contractors demonstrate that they understand their customers' needs and strive to make their projects as accessible as possible.
The Bottom Line: Flexible Payment Options Will Continue to Reshape the Home Improvement Industry
Will flexible payment options continue to be expected?
Flexible payment options are reshaping consumer buying decisions and will continue to define the future of home improvement. Residential contractors across all industries who lead with flexible payment options are building trust and delivering the experience today's homeowners expect.
Watercress Financial empowers contractors across every trade with easy, flexible financing solutions designed to fit the way homeowners buy today.
Are you ready to give your customers the flexibility they expect and your business the edge it deserves? Become a Watercress Financial Partner.
– Madison Schoppe (Marketing Content Developer)