The news: Fifty-two percent of US adults plan to use a buy now, pay later loan in the next six months, per October LendingTree data.

That’s up six percentage points from September—and is the strongest BNPL intent since April 2025.

Younger consumers continued to lead in installment enthusiasm: 61% and 57% of Gen Zers and millennials, respectively, at least considered applying for a loan during the month of October. By comparison, 33% of Gen Xers and 20% of baby boomers said the same.

Why this matters: The US holiday season is gearing up to be a fight for retailers and merchants to snag shoppers’ spending. 

We forecast that 2026 holiday retail sales growth will be the strongest since 2021. While spending is poised to jump, consumers still feel cautious moving into holiday shopping amid greater household budget stress.

BNPL availability at the POS or online can help retailers win over anxious consumers. 

Recommendations for payment providers: Younger consumers are most likely to want payment flexibility for everything from holiday shopping to essential spending. 

To unlock holiday payment volume, BNPL providers should:

• Advertise BNPL-enabled cards. The majority of US holiday shopping happens in-stores: Consumers will spend $1.112 trillion this holiday season in physical retail, versus $317.14 billion in ecommerce, per our forecast. Improving Gen Z card adoption could boost installment spend compared with options that have more friction like scanning a QR code at the POS.
• Expand partnerships into essential categories. Gen Zers’ second-most-used category for BNPL after clothing is now groceries (38%), per Lending Tree. BNPL providers should seek partnerships with diverse merchants where consumers want relief for big-ticket purchases in both discretionary and essential categories.

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