Why Gen Z Shoppers Are Embracing Credit Card Instalments

Credit cards remain one of the most popular ways to pay, whether for planned purchases or those made in the moment. For many consumers, especially younger ones, instalment plans offered through credit cards provide a flexible way to manage expenses without delaying gratification.

Recent research from PYMNTS and Splitit shows that 36 percent of consumers made an impulse purchase over $250 in the last three months. Of those, 35 percent used a credit card, and nearly a third chose to split the cost into instalments. Instalment plans allow shoppers to pay down purchases over time with predictable payments, either through the card issuer, the merchant, or a third-party provider at checkout.

Gen Z is leading the shift toward instalment-based credit card payments. Forty-five percent of Gen Z shoppers reported using an instalment plan for their most recent impulse buy. Most preferred options offered by merchants or third-party services, with only 15 percent opting for plans from the card issuer. When it comes to emergency spending, the trend holds strong. More than half of Gen Z respondents used instalments, with a near even split between issuer and third-party plans.

These habits reflect a broader shift in how younger generations manage their finances. As they gain more control over their spending, they are actively seeking ways to stay within budget while still enjoying flexibility and convenience.

For merchants, offering instalment options is more than a nice-to-have. It’s becoming a must. Meeting customers where they are and providing flexible ways to pay can drive conversion and build long-term trust with the next generation of buyers.