Holiday shoppers are more likely to buy if they can use buy now, pay later, according to a PayPal survey. Offering BNPL leads to higher order values. Gen Z and millennials are the main users. Americans are expected to spend $116.7 billion via BNPL by 2025. The Fed reports 82% use BNPL for convenience.

BNPL is a necessity for some Americans, especially those making less than $50,000. Nearly a quarter of users finance groceries. Financial experts warn of risks, as 24% had missed payments from May 2024 to May 2025. Lower-income shoppers have a higher rate of missed payments.

Providers don’t charge late fees, but some fine users up to $15 per late payment. 40% of BNPL users making less than $25,000 had a late payment. Only 13% of users making $100,000 or more missed a payment.

Read more at Yahoo Finance: Half of Holiday Shoppers Are More Likely to Complete Their Purchase With Buy Now, Pay Later Services