“The Pay Later Ecosystem Report: Consumers Will Let AI Recommend Pay Later, But They Want Control” examines how artificial intelligence could change the way consumers choose Pay Later options at checkout. Based on a survey of 2,034 U.S. consumers conducted March 30–April 14, 2026, the report finds that AI is already entering payment decisions, especially among younger consumers. Thirty-nine percent of U.S. consumers have used AI for at least one payment-related activity in the last three months, including budgeting, monitoring credit health, choosing payment methods and comparing Pay Later options.
The findings point to an opportunity for banks, card issuers, merchants and Pay Later providers. Consumers aren’t rejecting AI in payments. In fact, 61% would consider letting an AI shopping assistant recommend a Pay Later option for at least one common purchase category. Interest is highest among younger consumers, with 80% of Gen Z and 78% of millennials open to AI-driven Pay Later recommendations. Electronics, furniture, apparel, travel and everyday essentials are among the categories where consumers show the strongest interest.
Yet the report also shows that adoption depends on guardrails. Consumers want AI to help them compare options, lower costs and protect their credit, but they also want final approval before making a choice. The most important features include avoiding a negative impact on credit score, finding the lowest total cost over time, securing the most affordable monthly payment, and using existing cards or banking relationships when possible. In other words, consumers want AI to simplify Pay Later decisions without turning checkout financing into a black box.
In “The Pay Later Ecosystem Report: Consumers Will Let AI Recommend Pay Later, But They Want Control,” learn how:
- Generation and life stage shape AI-assisted Pay Later adoption more than income or financial stress. Gen Z leads all groups in using AI to compare credit card installment plans.
- Big-ticket purchases aren’t the sole opening for AI-driven financing recommendations. Consumers also show interest in using AI-assisted Pay Later for everyday essentials, medical expenses, home repairs and auto-related costs.
- Approval, transparency and human support could determine which AI payment tools win consumer confidence. Many shoppers want to review the total cost and understand the recommendation before committing to a plan.
About the report
“The Pay Later Ecosystem Report: Consumers Will Let AI Recommend Pay Later, But They Want Control,” a PYMNTS Intelligence report created in collaboration with Splitit, is the April 2026 wave of The Pay Later Ecosystem Report series, which launched in April 2025 to track consumer use of Pay Later over time. The April 2026 wave is based on a survey of 2,034 U.S. adult consumers fielded March 30–April 14, 2026. This report examines consumer use of AI tools for payment-related activities, openness to AI-driven Pay Later recommendations, preferred features and trust factors across generational cohorts and purchase categories. The sample was balanced to match the U.S. adult population by age, gender, education and income.
The April 2025 survey wave used wording that did not distinguish general-purpose card installments from store card installments. This may understate credit card installment adoption in that wave relative to subsequent waves. All other waves used consistent, differentiated question wording.
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