Installment plans can turn the first financed purchase into a lasting shopping habit, giving merchants a chance to win repeat business well beyond the original checkout.

That pattern stands out in “Financing the Decision,” the April installment of the PYMNTS Intelligence Pay Later Ecosystem Report. Based on a survey of 2,763 U.S. consumers conducted from Feb. 10 to March 2, the study found that 34% used credit card installment plans in the previous three months.

Their past use strongly shaped whether financing influenced where they shopped. For merchants, installments can work like a familiar checkout lane.

Once customers know how it works, they’re more inclined to choose it again. For issuers and merchants, that creates a measurable opening to make flexible payments part of a longer customer relationship.

• Existing users carry the preference across purchase types. Seventeen percent of consumers were dual users who tapped card installments for both everyday expenses and occasional purchases. Another 12% used them only for ongoing expenses, while 5% reserved them for discretionary purchases. That reach suggests installment use isn’t confined to big-ticket retail.
• Everyday use can lead shoppers into discretionary categories. Among consumers who used card installments only for day-to-day expenses, 57% said installment availability influenced where they bought tickets or experiences. Forty-nine percent said the same when choosing a travel provider. A tool first used to manage regular bills may become part of a broader payment routine.
• Nonusers remain difficult to move. Two-thirds of consumers hadn’t used a card installment plan during the previous three months. Across the categories studied, only 11% to 24% of nonusers said installment availability affected their choice of merchant.

Visibility alone may not be enough. Clear terms, simple enrollment and a useful first experience could help merchants introduce the product without turning checkout into a sales pitch.

The report also found a pronounced generational opening in healthcare. Fifty-five percent of Gen Z consumers said merchant-offered installment plans influenced where they sought medical or dental care, the highest-ranked category for that group. Across the broader pay later ecosystem, financing had the most influence when shoppers could compare several similar providers, including travel, food delivery and events. It had less sway over groceries and restaurant purchases, where habit, location and immediate need often guide the decision.

For merchants and providers, the encouraging takeaway is practical: Presenting installments clearly at the moment of comparison can help convert a payment option into a reason to return.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.

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