In retail, BNPL operates within a relatively straightforward transaction.

A consumer selects a product, sees the price upfront, chooses a payment option and completes the purchase. In that environment, BNPL can help consumers manage larger purchases while helping retailers reduce cart abandonment and improve conversion rates.

This model has experienced tremendous growth. BNPL spending increased from approximately $2 billion in 2019 to $75 billion in 2023, and roughly one in five consumers used BNPL at least once in 2022.

For retailers, the value proposition is clear.

For healthcare, however, the situation is often more complex.

Healthcare payments differ from retail transactions in several important ways.

Patients frequently do not know exactly what they will owe when care is delivered . Insurance coverage, deductibles, coinsurance, prior authorizations and claims adjudication can all influence the final balance. In many cases, patients may not receive a final bill until weeks after treatment.

Healthcare services are also often non-discretionary. Consumers may postpone purchasing a television or choose a less expensive alternative. Medical care is frequently necessary, urgent or tied to an ongoing health condition.

Patients are often making financial decisions under circumstances that differ dramatically from traditional retail purchases. Medical events can involve stress, uncertainty and competing priorities that rarely accompany a typical consumer transaction.

At the same time, healthcare is not a single market.

Many hospital systems and nonprofit health organizations prioritize long-term patient relationships, affordability programs and community care initiatives. Other segments, including dental, vision, dermatology, elective procedures, fertility services and aesthetics, often operate in a more consumer-driven environment where financing options can influence patient conversion and treatment decisions.

These differences do not mean BNPL lacks value in healthcare. Rather, they highlight the importance of evaluating various financing solutions within the context of each organization's patient population, financial objectives and care model.

The broader question may not be whether providers should choose BNPL or traditional payment plans. Instead, healthcare organizations should consider how they create financial engagement experiences that align with the realities of modern healthcare. Patients increasingly expect transparency, digital self-service options and flexible ways to pay throughout their care journey, not only after receiving a bill.

The rise of BNPL sometimes creates the impression that installment-based payments are a new concept in healthcare.

They are not. Healthcare providers have offered payment plans for years as a way to help patients manage larger balances. A patient receiving a $1,200 bill following an outpatient procedure, for example, may be able to spread payments over six, twelve or even eighteen months instead of paying the balance all at once.

The need for payment flexibility is clear. More than half of consumers report receiving a medical bill greater than $400 in the past year, while 87% say they would be likely to use a no-interest payment plan if offered by their healthcare provider. Providers are feeling the impact as well, with nearly two-thirds reporting that large patient balances are a significant challenge. These findings point to growing demand for solutions that help patients manage healthcare expenses in a way that works for both patients and providers.

Importantly, many healthcare payment plans are structured differently than retail financing programs. Their purpose is not necessarily to increase transaction volume or conversion rates. Instead, they are designed to help patients manage healthcare expenses while supporting positive financial experiences and preserving long-term trust between patients and providers.

When financial barriers prevent patients from moving forward with recommended treatment, the implications extend beyond collections to patient access and continuity of care. This is why payment flexibility has become an increasingly important component of the overall healthcare experience.

As healthcare organizations evaluate financing options, it is important to recognize that installment payments can be structured in very different ways.

Some BNPL programs may involve fees, interest charges or repayment terms that increase the total amount paid over time, depending on the specific program selected. Healthcare leaders should understand how repayment structures affect patient affordability and whether they align with organizational goals around transparency and trust.

This consideration is particularly important given growing consumer expectations around transparency. Research found that 83% of consumers would abandon a purchase if unexpected fees appeared during checkout. While healthcare and retail are different environments, the finding underscores the importance of clearly communicating costs and avoiding surprises whenever possible.

Unlike most retail transactions, healthcare financial interactions can influence a patient's perception of the overall care experience. The way payment options are presented, communicated and managed can affect trust, satisfaction and long-term engagement. As a result, financing strategies should be evaluated not only on collection performance, but also on their impact on the broader patient relationship.

Healthcare organizations should therefore evaluate financing solutions not only on payment flexibility, but also on transparency, patient outcomes and the overall financial experience they create.

The conversation around financing often focuses on patients. However, healthcare organizations must also consider the operational impact.

Patient collections remain a significant challenge. Sixty-three percent of providers report that large patient balances are a top concern. Seventy percent require two or more statements to collect a patient balance in full, and 66% report that collecting a balance typically takes more than 30 days. These collection processes often involve paper statements, manual outreach and administrative follow-up that increase costs and consume staff resources.

Increasingly, organizations are looking to address these challenges earlier in the patient financial journey. When estimated patient responsibility can be discussed before service and flexible payment arrangements established upfront, providers may reduce payment friction, improve financial transparency and streamline downstream collection efforts.

One reason some organizations choose BNPL is that the administration of the repayment plan shifts to a third party. Rather than managing payment schedules, collection communications and ongoing account maintenance, providers can receive payment while the financing provider assumes responsibility for managing repayment.

As organizations evaluate financing options, the key question may be whether modern healthcare payment-plan technology can deliver similar operational efficiencies while allowing providers to maintain direct control of the patient financial experience.

Provider-managed payment plans have evolved significantly in recent years. Electronic statements, saved payment credentials and automated payment schedules can allow patients to enroll once and make predictable monthly payments with minimal ongoing effort.

This "set-it-and-forget-it" experience can help patients steadily pay down balances while reducing the need for repeated billing cycles, manual collection activity and staff intervention. Industry data suggests healthcare is already moving in this direction. Between 2022 and 2025, electronic statement transactions increased 136%, while cards saved on file increased 360%. These tools can help providers offer interest-free payment flexibility while streamlining collections and maintaining the provider-patient relationship.

The goal should not simply be to offer financing.

The goal should be to create payment experiences that are easy for patients to use and efficient for providers to administer.

As interest in BNPL continues to grow, healthcare organizations may benefit from asking several key questions:

• Does this solution fit our specific patient population and care setting?
• How transparent are the fees and repayment terms?
• Does it improve the patient financial experience?
• Does it help patients manage larger balances responsibly?
• How does it impact provider operations and collection workflows?
• Can it be integrated into existing digital payment experiences?
• Does it strengthen trust between patients and providers?
• Can it reduce administrative burden without sacrificing the patient relationship?

The answers will vary by organization, patient population and financial strategy.

The growing interest in Buy Now, Pay Later reflects a broader reality: patients increasingly expect flexibility in how they pay for healthcare.

That expectation is unlikely to change.

The future of healthcare payments may not be defined by whether organizations adopt BNPL or another financing model. It may be defined by how effectively providers combine transparency, automation and payment flexibility into a financial experience that patients trust and providers can sustain.

Healthcare's challenge is not simply helping patients finance care. It is building financial experiences that improve access, strengthen trust and support sustainable provider operations at the same time.

Patients need flexibility. Providers need efficiency. The most effective payment solutions will likely be those that deliver both.

As healthcare organizations continue evaluating financing options, the conversation should extend beyond BNPL itself and focus on a larger goal: building payment experiences that are transparent, flexible and aligned with the unique needs of healthcare.