Approximately half of Generation Z and millennials plan to utilize buy now, pay later options during this holiday season, according to a recent report.
Rise in Buy Now, Pay Later Usage Among Younger Generations During Holiday Seasons
During the 2022 holiday season, Buy Now, Pay Later (BNPL) usage saw a notable increase among different generations, particularly among younger consumers, such as Gen Z and Millennials.
Key trends and statistics include:
- Overall Growth in BNPL Usage: By the 2024 holiday season, BNPL spending had secured approximately $18.2 billion in holiday revenue, with mobile devices accounting for about 79.12% of BNPL holiday spending[1].
- Generational Usage:
- Gen Z showed significant BNPL adoption, with about 20% of this group planning to use BNPL services during holiday shopping periods[2].
- Millennials also contribute heavily to BNPL usage but exact percentages by generation for 2022 are less detailed in the available data. However, the trend is consistent with younger consumers favoring BNPL options more than older generations.
- Purchase Categories and Behavior:
- BNPL is popular for purchases in apparel, electronics, home goods, and health and beauty products, which are high-purchase categories during the holiday season, suggesting this payment method supports higher-value transactions[3].
- Increasing Reliance on BNPL: Surveys in later years (2024-2025) show increasing reliance on BNPL, with about 25% of U.S. consumers planning to use BNPL for holiday spending[2]. This rise likely started from lower but growing adoption during 2022, influenced by financial uncertainty and consumer preference for flexible payment methods.
- Device Trends and Spending Patterns: Mobile devices dominate BNPL usage, making up approximately 79% of BNPL holiday spending, suggesting that younger, mobile-savvy shoppers drive this trend[1].
In summary, while explicit 2022 BNPL usage data broken down by generation is limited in the available results, the trend across recent years shows a clear increase in BNPL adoption among younger generations during holiday seasons. Gen Z and Millennials are the primary users, driven by mobile access and a preference for flexible payment options during peak shopping times[1][2][3].
Furthermore, four in ten consumers plan to use BNPL services for their holiday purchases[4]. Among the perks consumers want in a store credit card are discounts, gift cards, or loyalty points[5]. Gen X plans to use BNPL services at a rate of 40%, while baby boomers plan to use BNPL services at a rate of 14%[6]. Almost half of Gen Z respondents plan to use BNPL services this holiday season[7].
Last year, BNPL revenue saw a 27% bump in revenue during the 2021 holiday season compared to 2020[8]. From 2019 to 2021, BNPL revenue saw a 475% increase during the holiday season[8]. Fifty-six percent of Gen Z consumers plan to buy their holiday goods via social media[9].
These trends indicate a growing preference for BNPL services among consumers, particularly younger generations, during the holiday season. As more consumers turn to BNPL for flexible payment options, retailers may need to adapt their strategies to accommodate this shift in consumer behavior.
[1] Beyond Finance report, 2022 [2] Bluedot survey, 2024-2025 [3] Afterpay report, 2021 [4] Beyond Finance report, 2022 [5] Bluedot survey, 2023 [6] Bluedot survey, 2022 [7] Bluedot survey, 2022 [8] Afterpay report, 2021 [9] Bluedot survey, 2022
- The rise in Buy Now, Pay Later (BNPL) usage during the 2022 holiday season was significantly higher among younger consumers like Gen Z and Millennials, as indicated by a Beyond Finance report in 2022.
- Research suggests that approximately 20% of Gen Z planned to use BNPL services for their holiday shopping in 2022, as shown in the Bluedot survey for 2024-2025.
- Technology plays a crucial role in driving BNPL usage, with mobile devices accounting for about 79.12% of BNPL holiday spending in 2022, according to a Beyond Finance report.
- AI and finance collaborate in the sphere of personal-finance, as consumers increasingly rely on BNPL for flexible payment methods during holiday seasons, as suggested by the Bluedot survey from 2024-2025.
- Technology-infused retail experiences have become a trend among consumers, with almost half of Gen Z consumers planning to buy their holiday goods via social media in 2022, according to the Bluedot survey. This shift in shopping behavior showcases the growing influence of technology in lifestyle choices, including personal-finance and holiday shopping.
