Buy now, pay later services have evolved far beyond the original consumer installment model. In 2026, BNPL infrastructure is being embedded into business-to-business transactions, healthcare payments, and even tax obligations, creating a multi-trillion dollar addressable market that traditional lenders are scrambling to address.
B2B BNPL Takes Off
The most significant expansion of the BNPL model has been into business-to-business payments, where trade credit has always existed but has historically been managed through manual invoicing processes. Companies like Hokodo, Billie, and Resolve are digitizing B2B trade credit, offering instant credit decisions at the point of purchase for business buyers.
Hokodo, which focuses on the European market, reported that its B2B BNPL volume grew 280 percent year over year in Q1 2026. The company underwrites transactions using real-time business data from sources including Companies House filings, banking data via open banking APIs, and trade credit bureau reports. Approval decisions are returned in under two seconds for most transactions.
Healthcare Installments
Healthcare has emerged as one of BNPL’s most impactful verticals. With the average American facing $1,850 in annual out-of-pocket medical expenses, companies like Walnut and PayZen are offering zero-interest installment plans for medical bills. The model reduces bad debt for healthcare providers while making care more accessible for patients.
PayZen has partnered with over 500 healthcare systems and reports that patients offered installment plans are 40 percent more likely to pay their bills in full compared to those receiving traditional paper statements. The company’s AI models assess each patient’s ability to pay and offer customized repayment schedules ranging from three months to five years.
Tax Payment Flexibility
Several fintech companies have begun offering installment plans for tax obligations, an area that government tax authorities have historically managed through their own payment plan systems. Catch, a tax savings platform for freelancers, now offers BNPL-style tax payment plans that allow quarterly estimated tax payments to be spread over additional installments.
Regulatory Tightening
The expansion of BNPL into new verticals has drawn increased regulatory attention. The Consumer Financial Protection Bureau finalized its interpretive rule classifying BNPL providers as card issuers subject to Regulation Z disclosure requirements. The UK’s Financial Conduct Authority has implemented similar measures requiring BNPL providers to conduct affordability assessments before extending credit.
Industry leaders have largely welcomed the regulatory clarity, arguing that reasonable oversight lends legitimacy to the sector and weeds out less responsible operators. Affirm CEO Max Levchin has publicly supported mandatory affordability checks, noting that responsible lending practices ultimately benefit the industry by reducing default rates and maintaining consumer trust.
The Credit Infrastructure Layer
The broader trend behind BNPL’s expansion is the embedding of credit decisions into the point of transaction across every vertical. Rather than requiring consumers and businesses to apply for credit separately and then use it for purchases, embedded lending makes credit available at the moment of need with instant underwriting decisions.
This evolution suggests that BNPL’s ultimate form may not be a standalone product category but rather a capability layer that any commerce platform can offer. The companies building the infrastructure to make this possible are positioning themselves for a market far larger than consumer retail installments.
