According to PYMNTS.com, a new survey of 2,286 U.S. consumers from November 17 to December 12, 2025, reveals that “Pay Later” options like BNPL are fundamentally reshaping spending. The key finding? It’s not just for products anymore. Nearly two in three consumers now prefer using installment plans for travel purchases, and 53% favor them for events and experiences like concerts—a sharp 13-point jump since April 2025. Meanwhile, the average credit card balance has climbed to $3,564, up nearly $200 since April. For the holiday season, 44% of consumers are likely to use BNPL, with that figure soaring to 84% among existing users. The strain is most acute among those struggling financially: their average credit card balances shot up by nearly $600 in that same period.
The Experience Economy, On Credit
Here’s the thing that really stands out. For years, BNPL was pitched as a way to smooth out the cost of a new TV or a fancy pair of shoes. But this data shows the narrative has flipped. People are now primarily using it to finance experiences—travel, vacations, concerts, massages. That’s a huge shift. It means these payment plans are moving from enabling discretionary shopping to enabling discretionary living. When 57% of people say BNPL availability influences where they book an event, it’s clear this isn’t just a payment method. It’s a demand driver. Merchants in travel and hospitality are basically being handed a new tool to capture customers who want the trip but can’t or won’t swipe a credit card for the full amount upfront.
A Liquidity Bridge, Not a Budgeting Tool?
Now, the really concerning part of the report is what it suggests about financial health. The data draws a pretty direct line between BNPL use and higher credit card debt. Consumers likely to use BNPL for the holidays have an average credit card balance $1,128 higher than those who aren’t. And the most habitual users—those using it for both essentials and fun—have average balances 60% higher than non-users. So what’s really going on? For a significant chunk of users, this looks less like savvy budgeting and more like a liquidity bridge. They’re using BNPL to make purchases because their credit cards are already tapped out. It’s a way to access more short-term credit when traditional revolving lines are maxed. That’s a very different, and riskier, proposition than just spreading out payments for cash flow management.
The Holiday Crunch and Beyond
So, what does this mean for the holidays and after? The seasonal spike in credit balances is normal, but layering widespread BNPL use on top of it creates a more complex debt picture. People aren’t just putting gifts on a card; they’re putting travel to see family and holiday parties on installment plans, too. The generational divide is stark: two-thirds of Gen Z and millennials are on board, compared to just 15% of boomers and seniors. But it’s not just a young person’s game. Nearly half of those earning over $150,000 are likely to use it, suggesting even higher-income folks are embracing the “pay-in-four” mentality for flexibility. The question is what happens in January and February when all these installment cycles come due alongside those higher credit card statements. This trend is reshaping spending behavior in real-time, and the financial hangover might reshape it right back.
