Consumers Lean on Installments to Manage Black Friday

Consumers approached Black Friday with a clear priority: stick to a budget while finding ways to stretch purchasing power. The PYMNTS Black Friday 2025 report shows that even with 151 million shoppers turning out, down 7% from last year, the headline stability in spending masked a deeper shift toward financial discipline aided by structured credit use.

Shoppers Spent Slightly More but Bought Fewer Items

The data shows shoppers spent an average of $295, about $9 more than last year, yet they bought fewer items. About 37% of consumers bought fewer items compared with 2024, up from 30% the year prior.

Consumers managed inflation’s cumulative effect and their own cash flow constraints by reducing basket sizes rather than eliminating purchases entirely. This tradeoff suggests that the spending uptick was driven by higher prices and targeted purchases rather than broader consumption.

The retreat in participation was led by older cohorts. Bridge millennials, Gen X and baby boomers all registered lower turnout.

But even as fewer shoppers came out, consumers who did participate exhibited more deliberate planning with both when and how they spent. The share of people who completed most of their holiday shopping before Black Friday rose to 46%, a structural redefinition of the season that spreads spending across a longer period.

Consumers Manage Liquidity

One of the clearest payment trends we found at PYMNTS  is the rise of credit card installment features. Overall installment usage remained broadly stable year over year, but our data shows a sharp increase among the most financially stressed consumers. Among struggling paycheck-to-paycheck shoppers, use of credit card installments jumped from 49% to 58% across channels.

That rise eclipses other forms of structured credit, which remain comparatively stable. Consumers may be paring back basket sizes, but those with the highest liquidity strain are turning to credit card installment options at levels that now make installments the dominant form of structured financing for Black Friday purchases.

The responses indicated that 31% of all shoppers used card installments and that struggling consumers were significantly more likely to rely on them to manage spending.

Nearly 60% of consumers living paycheck to paycheck with difficulty paying bills used fixed installments. This level of adoption shows a payment method that is no longer niche, seasonal or discretionary.

The Appeal of Installments

Consumers are embracing installment features for reasons tied directly to budgeting and predictability. Installments provide a fixed schedule, known repayment amounts and control over timing. Mechanically, card-based installment plans convert eligible credit card purchases into fixed monthly payments, typically at a set rate and for a specific term. That structure reduces uncertainty and creates a buffer against shocks to monthly cash flow.

For a consumer managing liquidity constraints, that predictability functions like a budgeting tool rather than a credit decision. The shift is not toward more borrowing but toward better planning.

A Structural Shift in Financing Holiday Spending

The sharp rise among struggling consumers signals more than tactical use of installments. It points to a structural shift where installments are becoming a default liquidity mechanism rather than a selective option. Financially strained shoppers shortened their purchase lists, expected higher prices and leveraged rewards or structured credit tools to extend fixed budgets.

In this environment, installments serve the role that discretionary spending cushions used to fill. They are a primary method for absorbing unexpected costs or timing mismatches between income and spending.

The Opportunity for Banks

For banks, this shift presents a clear opportunity to redesign installment products around flexibility and budgeting features. Because installment plans are already embedded into credit card rails, issuers can enhance them with clearer terms, easier activation, real-time budgeting insights and integration with rewards strategies.

Consumer benefits would include predictable payments, improved ability to manage monthly outflows and better tools to handle liquidity shocks without resorting to revolving balances. For banks, the advantages include deeper engagement, higher on-card spending and stronger loyalty at a time when consumers are actively evaluating value across payment tools.

Black Friday’s data makes the case that installment credit is no longer a peripheral feature. It is central to how financially stressed consumers shop, plan and pay.