NEW YORK—The availability of buy now, pay later and merchant-offered installment plans is increasingly influencing where consumers choose to shop, book travel, seek healthcare and even buy groceries, with younger consumers and heavy pay later users showing the strongest response, according to new research from PYMNTS Intelligence.
The report, based on a survey of 2,763 U.S. consumers conducted between Feb. 10 and March 2, found financing options have the greatest influence in higher-consideration categories such as travel, events, healthcare and home services. Among Millennials, 63.9% said the availability of installment plans affects where they book travel or vacations, while 52.5% said financing availability influences where they purchase events and experiences. For Gen Z consumers, healthcare emerged as a standout category, with 54.6% saying medical or dental installment plans influence provider choice.
The data also showed financing’s influence drops sharply with age. Just 4.7% of Baby Boomers and seniors said installment availability affects travel bookings, while only 7.9% said it influences medical or dental decisions. Generation X consumers fell in the middle, with roughly 20% to 30% saying financing availability affects merchant choice across most categories.
PYMNTS found the strongest financing influence among consumers already heavily engaged with BNPL products. Among consumers using BNPL for both everyday and discretionary purchases, 87% said BNPL availability influences travel bookings and 86% said it affects purchases of events and experiences. The report said those “power users” also showed elevated responsiveness across utility bills, grocery purchases and subscription services, suggesting financing availability increasingly shapes not just large-ticket spending, but recurring household expenses as well.
The report also highlighted a growing divide between traditional merchant installment plans and BNPL usage patterns. Consumers using installment plans for day-to-day and larger purchases were especially likely to factor financing into merchant selection, including 64% for events and experiences and 62% for travel. Even in groceries—where financing influence remained comparatively lower overall—46% of consumers using installments for both everyday and larger purchases said financing availability affects where they shop.
PYMNTS said the findings suggest financing is evolving from a payment feature into a competitive acquisition tool for merchants and service providers, particularly among younger demographics. Healthcare and dental financing stood out as a notable emerging category, with nearly half of Gen Z consumers also saying BNPL availability influences where they seek care, underscoring how flexible payment offerings are increasingly shaping consumer decisions beyond retail purchases.