Americans are no longer just spreading payments over time. They are spreading risk, timing and lifestyle choices as rising costs reshape how discretionary spending actually happens.
That shift is at the center of “Buy Now, Pay Later Powers the Experience Economy,” a January 2026 PYMNTS Intelligence data book that tracks how pay-later options are moving beyond retail checkout and into experiences, holidays and everyday financial management.
Based on a survey of nearly 4,000 consumers conducted between Nov. 17 and Dec. 12, 2025, the report shows installment payments becoming a routine tool rather than a special financing decision.
The headline finding is not simply that buy now, pay later (BNPL) use is growing. It is where and why it is growing. Consumers are increasingly using pay later for concerts, travel, home services and even necessities such as utilities and medical bills.
This expansion is happening alongside rising credit card balances, not instead of them. Cards remain central, but installments are now layered on top, giving households more ways to manage cash flow when prices stay high and budgets tighten.
The result is a consumer credit environment that is more flexible, but also more complex, as short-term financing becomes embedded in everyday decisions made by households.
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Three data points from the report illustrate how quickly that shift is taking hold:
- 53% of consumers say they would prefer to use pay-later options when purchasing tickets for events and experiences such as concerts or massages, up from 40% six months earlier. That represents a 33% increase in preference in a short period of time.
- Average monthly credit card balances reached $3,564 in November 2025, up $198 from April, with increases seen across all financial lifestyles, including consumers who do not live paycheck to paycheck.
- Among consumers living paycheck to paycheck and struggling to pay bills, 29% plan to pay only the minimum credit card payment or less, signaling continued pressure on revolving debt even before additional seasonal spending hits .
Beyond these figures, the report points to a broader behavioral change with implications for merchants, lenders and platforms. Pay later is influencing where consumers choose to spend, not just how they pay. More than 4 in 10 consumers say the availability of installment options is highly influential when booking travel or vacations. That makes financing a demand driver, particularly for experience categories that peak around holidays and major events.
At the same time, the data show that pay later is not acting as a substitute for credit cards. Instead, it often sits beside them as a complement. Seventy percent of consumers say they are at least somewhat likely to use a general-purpose credit card for holiday purchases, while 44% say they are likely to use fixed installment plans.
Consumers who expect to use BNPL during the holidays carry card balances more than $1,100 higher than those who do not, suggesting installments often serve as a short-term cash flow bridge rather than a reset of overall debt levels.
Other findings underscore how installment behavior is spreading into everyday financial management. Consumers are increasingly paying utilities, medical and dental bills over time, blurring the line between discretionary and essential spending. Even older cohorts, who are more likely to pay more than the minimum or pay off balances, are operating in an environment where installment options are normalized.
Taken together, the report suggests that pay later has become part of the financial infrastructure of consumer life. It shapes spending choices. It influences merchant competition. And it coexists with rising card balances rather than replacing them. This is no longer a niche checkout feature. It is a structural shift.
