Survey: Consumers eye buy now, pay later options in face of tariffs
The use of buy now, pay later services is expected to rise if and when tariffs impact prices.
More than half (52%) of consumers have used flexible financing options in the past, with younger consumers (66% of Gen Z and 48% of millennials) leading the charge, according to a new survey from CouponBirds. Nearly seven-in-10 (68%) buy now, pay later users noted that they would likely increase their usage if tariffs impact prices.
More than a quarter (27%) of those surveyed said they are "very likely" to increase buy now, pay later usage if prices increase, while 41% said they are "somewhat likely." Even among those who have never used buy now, pay later programs before, 43% report they would consider it if tariffs cause significant price increases.
[READ MORE: Survey: Millennials slightly favor brand loyalty, Gen Z prioritizes price]
Increasingly, buy now, pay later programs are being used for basic needs. CouponBirds found that Gen Z (51%) and Gen X (24%) lead all age groups in using these services to finance healthcare costs, a stark contrast to baby boomers at just 12%. Overall, 42% of buy now, pay later users say they've used it to make their medical expenses more affordable.
While 24% of all users report using these services for rent, mortgage, or utilities, the number jumps to 32% among Gen Z and 19% among millennials.
With increased usage comes looming payments. According to the survey, over the past year, more than half (51%) of Gen Z users have missed at least one payment, significantly higher than millennials (41%), Gen X (32%) and baby boomers (18%). Among Gen Z users who paid late, 38% report multiple missed payments, while those earning under $50,000 annually are nearly twice as likely to miss payments as their higher-earning counterparts.
Among all buy now, pay later users, 66% report being "very confident" in their ability to make payments, while 27% said they are “somewhat confident” and 5% are not very confident.
“Whether buy now, pay later represents a genuine innovation in consumer finance or a warning sign of deeper economic struggles could depend largely on how providers balance growth with responsible lending practices, particularly as they expand into essential goods and services,” noted CouponBirds.
CouponBirds surveyed 2,068 U.S. adults between April 24-25, 2025. The median age for survey participants was 38.7 years old. The full survey can be found here.
