Obviously, we all want to spoil our loved ones, but price increases are making it hard to do this. Now, shoppers are turning to a holiday shopping hack that floats their gift purchases without destroying their wallets. The hack in question? Buy now, pay later (BNPL) loans.
Of course, BNPL isn’t a novel payment method. In fact, Bank of America’s June 2025 Consumer Checkpoint Survey reported that Millennial and Gen Z consumers are increasingly taking advantage of BNPL loans.
How do buy now, pay later (BNPL) loans work?
BNPL loans essentially let you finance purchases. So, instead of paying for items in full upfront, you pay through installments that typically have little interest or no interest. Similarly, these loans usually offer instant approval without a hard credit check.
Retailers who offer this have a “buy now, pay later” option consumers can select at checkout. This is also where they’ll learn who the participating BNPL providers are.
Shoppers are turning to BNPL for holiday shopping
Although younger generations are the biggest frequent BNPL users, new holiday shopping data suggests this will become a widespread practice this season.
PayPal’s 2025 Holiday Shopping Survey surveyed 1,000 U.S. adults, 50 percent of whom reportedly plan to sue BNPL for their holiday gift purchases. Moreover, 52 percent of respondents say they’re more likely to make a purchase if BNPL is an available option at checkout.
BNPL sales expected to break records
Given the information above, it’s hardly surprising that Adobe predicts BNPL sales made from mobile devices will break records by the end of 2025. Per the company’s Holiday Shopping Forecast, BNPL mobile sales will total $16.3 billion by December 31. If this number is correct, this would reflect a 9.6 percent year-over-year increase.
Why BNPL will dominate 2025 holiday shopping
Of course, it’s easy to see why an increasing number of shoppers are finding BNPL so attractive. For many, financial stress is at an all-time high, and prices are rising faster than the speed of light. Most people simply don’t have the funds set aside to cover what they need for holiday gift purchases.
If you’re already strapped for cash, paying for gifts in full upon purchase will can overextend your wallet. Luckily, BNPL loans offer a solution to this dilemma, Divvying up costs will prevent you from draining your bank account.
How to strategically use BNPL loans for holiday shopping
Using BNPL loans for holiday purchases isn’t without risk. The biggest drawback of this payment method is that you can accidentally buy items future-you can’t afford. For this reason, Bread Financial recommends knowing what your monthly expenses are so you know what you can realistically afford to fit in.
Additionally, track your payment schedule. The last thing you want is to accrue late fees because you accidentally missed a payment. And as always, reading the fine print so you know what you’re signing up for and agreeing to is always a good idea.
Ultimately, BNPL loans might have some associated risk, but they’re the flexible payment option shoppers need this holiday season. That way, they can make smarter money moves without skimping on gifting their loved ones.
