Thirty-five percent of U.S. consumers used credit card installment plans in the last three months, according to new research from PYMNTS Intelligence. The findings, part of the “Financing the Decision” report, show that once customers understand how these payment options work, they are more likely to choose them again, which can turn a one-time purchase into a lasting shopping habit. While the report notes that installment availability influences merchant choice in many categories, the impact varies significantly by industry and consumer type.
Dual users represent a growing segment of the market. Seventeen percent of consumers use card installments for both everyday expenses and occasional purchases, while 12% rely on them for ongoing bills only. That 12% figure stands in contrast to the 5% who save the option for discretionary spending. The data suggests that everyday use often bleeds into other areas. Among those who used installments strictly for day-to-day expenses, 57% said the option influenced their choice of ticket sellers or entertainment providers, and 49% said the same for travel services.
Nonusers, however, remain harder to convert. Two-thirds of consumers did not use a card installment plan in the previous three months. Across all categories studied, only 11% to 24% of these nonusers said installment availability affected their merchant choice. The report suggests that visibility alone may not be enough to win them over, pointing to the need for clear terms and a useful first experience to avoid turning the checkout process into a sales pitch.
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The influence of installment plans extends into healthcare, where a distinct generational gap appears. Fifty-five percent of Gen Z consumers said merchant-offered installment plans influenced where they sought medical or dental care. This group ranked healthcare as the category most affected by financing options, a finding that contrasts with other sectors like food delivery and events. In those broader pay later categories, financing had the most sway when shoppers could compare several similar providers.
While groceries and restaurant purchases see less influence from installment options, habit and location still guide the decision there. The report emphasizes that presenting these financial tools clearly at the moment of comparison can help convert a payment option into a reason to return. Merchants who can explain the mechanics simply may find that a flexible payment plan helps secure a longer customer relationship than the original checkout ever could.
