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 X and millennials currently dominate the luxury market due to their wealth and purchasing power, while Gen Z is starting to reshape the landscape with their unique consumption habits and preferences, primarily focusing on social media engagement. As Gen Z is expected to become significant consumers in the future, luxury brands face the challenge of effectively targeting both demographics with tailored strategies.