NEW YORK — Buy now, pay later (BNPL) services continue to carve out a distinct space in the modern retail and payments landscape, capturing the interest of younger shoppers while quietly bridging demographic divides. According to a new industry survey released by the Electronic Transactions Association (ETA) and The Strawhecker Group (TSG), younger consumers lean more heavily into installment loans than their older counterparts. However, the data reveals that the appeal of BNPL extends far beyond a single age bracket, drawing in everyday consumers across a wide variety of income levels.
The findings offer a nuanced look at consumer sentiment regarding alternative lending and modern checkout options at a time when shoppers are increasingly looking for flexibility at the digital and physical point of sale.
Understanding Consumer Perceptions Across Demographics
The collaborative survey conducted by the ETA and TSG highlights how consumer perceptions of BNPL products vary significantly depending on generational lines and household income tiers. When asked to reflect on their experiences with BNPL purchases over the preceding months, about four in 10 respondents—specifically 37% of consumers across all surveyed income levels and generations—expressed a favorable view of these financing services. Interestingly, this positive sentiment was closely matched by an unfavorable view from 36% of respondents, indicating that while installment solutions have achieved mainstream awareness, they still polarize a notable portion of the consumer base.
A deeper dive into the generational breakdown shows a clear trend favoring youth adoption. Millennials lead the pack, with 47% reporting a favorable perception of BNPL payments. This enthusiasm cools slightly but remains prominent among younger and older cohorts: 39% of Generation Z consumers, 38% of Generation Xers, and 24% of baby boomers hold a favorable view of installment financing.
Income distribution tells a similarly compelling story. Rather than being confined exclusively to lower-income households looking to stretch tight budgets, BNPL finds a balanced audience. About a third (35%) of both low-income and high-income consumers report favorable opinions of BNPL payments. Meanwhile, middle-income consumers outpace both groups, with 40% expressing a preference for the payment method, positioning it as a popular tool for household budgeting and mid-tier discretionary spending.
Evaluating New Payment Technologies and Adoption Barriers
Beyond BNPL, the ETA and TSG survey provided a broader snapshot of how consumers have experimented with various emerging payment methods over a 12-month period. The data underscores a hierarchy of adoption that heavily favors frictionless, everyday transaction methods over novel or specialized financial products.
At the very top of the list sits tap-to-pay technology, which was tried by 53% of surveyed consumers over the past year. Digital wallets followed closely behind at 31%, while peer-to-peer (P2P) payment applications captured 28% of consumer experimentation. In stark contrast, only 9% of respondents reported trying a BNPL service for the first time over the past year, while cryptocurrencies brought up the rear at just 3% during the same timeframe.
Industry analysts emphasize that these figures point to a fundamental truth in consumer behavior: convenience and familiarity are far more effective at turning trial runs into repeat habits than sheer novelty. Once consumers take the plunge and experience the ease of tap-to-pay, digital wallets, and P2P apps, a remarkably large share continue to use them regularly. Consequently, industry stakeholders note that driving that initial successful transaction remains the most critical adoption lever for any emerging financial technology.
The Broader Economic Context and Holiday Spending Trends
The insights from the ETA and TSG report align closely with findings from other recent consumer surveys, which collectively paint a picture of shoppers actively seeking out financial tools that help them manage cash flow. Consumers frequently perceive BNPL services as a practical mechanism for spreading out purchases over manageable increments rather than relying strictly on revolving credit card debt.
For instance, a recent survey conducted by PayPal Holdings, which surveyed 2,005 adults, indicated that about six in 10 consumers lean toward BNPL options specifically to extend their holiday budgets and maintain tighter control over their spending during peak retail seasons. This behavior transforms installment options from emergency funding sources into planned budgeting instruments.
Data from major industry players further reinforce the reliability of BNPL users when it comes to meeting repayment obligations. Block subsidiary Afterpay reported earlier this year that installment payment behavior remains remarkably disciplined. During the 2025 holiday shopping season, the vast majority—specifically 96%—of Afterpay customers who utilized installment payment services for Black Friday and Cyber Monday purchases successfully repaid their debts either early or right on time. As retail environments continue to evolve and payment ecosystems grow more crowded, these repayment patterns suggest that BNPL will remain a staple tool for modern consumers navigating both everyday purchases and major shopping events.