What's Happening?
According to PayPal's 2025 Holiday Shopping Survey, half of U.S. holiday shoppers intend to use Buy Now, Pay Later (BNPL) services to manage their expenses. The survey, which included 1,000 U.S. adults,
found that budget control and affordability are the primary reasons for this preference. BNPL services are particularly popular among Gen Z and millennial consumers, with one-quarter using these services regularly. The availability of BNPL options increases the likelihood of purchase completion, as noted by Michelle Gill, general manager at PayPal. The data indicates that offering BNPL can lead to significantly higher average order values for businesses.
Why It's Important?
The increasing reliance on BNPL services reflects a shift in consumer payment preferences, particularly among younger generations. This trend could have significant implications for the retail industry, as businesses that offer BNPL options may see increased sales and customer engagement. However, the rise of BNPL also raises concerns about consumer debt, as some users struggle with installment payments. The financial services industry may need to address these challenges by providing better consumer education and support. The growing popularity of BNPL could also influence credit card usage and the broader financial ecosystem.
