A recent survey shows that half of U.S. holiday shoppers plan to use buy now, pay later (BNPL) services, primarily for better budget control. Gen Z and millennials are the biggest users, with many more willing to make purchases if BNPL is offered. However, some users face financial challenges, with many exceeding their budgets or missing payments.

Gen Z shoppers are cutting back on holiday spending more than any other generation, according to recent surveys. This trend poses a challenge for retailers who rely on this age group to drive sales as they enter the workforce and earn higher salaries.