US consumers plan to use buy now, pay later for holiday spending

A survey by NerdWallet indicates that many Americans are planning to use “buy now, pay later” (BNPL) services to fund holiday purchases, despite concerns regarding repayment. Nearly 40% of prospective BNPL users anticipate they will be unable to make payments in full and on time.

Adobe forecasts that online holiday purchases financed through BNPL services could reach a record $21.3 billion during November and December, representing a 6.6% increase from the previous year. This trend comes as consumers signal a reduction in overall spending; the average amount expected to be spent on gifts is projected at $879, a 21% decrease from the $1,107 anticipated in 2025.

Data from the Federal Reserve highlights existing challenges for BNPL users, noting that 26% reported paying late at least once in 2025. Additionally, 11% of users reported that a BNPL payment triggered an overdraft or insufficient-funds fee. The services are increasingly used for essential items, with one in five users financing groceries or food delivery.