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Insights and Expertise

Why flexible tive option for younger shoppers navigating a softening
job market and rising inflation. In 2024, 54 percent of Gen
payments are key Z reported using BNPL during the holiday shopping sea-
son, while only 50 percent said they used credit cards (see
https://bit.ly/4nIGFkQ).
to customer loyalty Likewise, a study by the CFPB found that BNPL purchas-

es represent 28 percent of total unsecured consumer debt
this holiday season held by 18- to 24-year-olds, compared to 17 percent among
borrowers of all age groups.

It's tempting to dismiss BNPL as a passing trend, but
meaningful psychology is at play: financially stressed
shoppers want more control. When every purchase feels
significant, the ability to split payments or use a digital
wallet balance can be the difference between hitting "buy"
or walking away.
The question all merchants should be asking this season is
simple: Can your customers pay the way they want?

Three strategies to make payments a competitive advan-
tage

Even amid economic uncertainty, merchants can shape
buyer behavior. Strategic improvements to the payment
experience can boost conversions and reduce cart aban-
By Adam Gray donment. Here's how merchants can drive sales and cus-
Stax Payments tomer loyalty:

ccording to PWC's Holiday Outlook 2025, 84 1. Give shoppers the power of choice: Don't ignore
percent of U.S. consumers expect to cut back buyers' preferences by defaulting to familiar payment
on spending in the next six months, marking offerings. Gen Z is up to three times more likely to use
A the slowest U.S. holiday sales growth since the an alternative payment method, like contactless pay-
pandemic (see https://bit.ly/3XhTRSN). For merchants, this ments, payment apps, and BNPL, than baby boomers,
means the point of sale has become a moment of truth. Gen X and millennials (see https://bit.ly/47ut8IN). By
avoiding a one-size-fits-all approach, you can capture
Discounts and promotions can draw customers in, but revenue that would otherwise be left on the table.
they don't guarantee conversion. As shoppers deliberately
weigh every purchase, a missing payment option or check-
out hiccup can be all it takes to trigger an abandoned cart. Holiday spending by the numbers

In a cautious spending climate, merchants' differentiator According to PwC, 84 percent of U.S. consumers ex-
isn't their inventory; it's whether customers feel confident pect to cut back on spending over the next six months,
completing the transaction. Flexible, intuitive payment signaling the slowest holiday retail growth since the
options can keep sales moving and loyalty intact this holi- pandemic.
day season.
In 2024, 54 percent of Gen Z used buy now, pay lat-
When budgets tighten, payments evolve er during the holidays, compared to 50 percent who
used credit cards. BNPL now represents 28 percent of
Economic slowdowns have historically influenced how total unsecured consumer debt held by 18- to 24-year-
consumers pay. Layaway plans emerged during the Great olds, the CFPB reported.
Depression, allowing shoppers to pay for items in install-
ments before taking them home. They resurfaced during Gen Z is three times more likely than older genera-
the Great Recession, once again helping families stretch tions to choose alternative payment methods such as
budgets while retailers kept revenue flowing. digital wallets, apps and BNPL.

A similar shift is happening today with the rise of Buy For merchants, flexibility at checkout is no longer op-
Now, Pay Later (BNPL). Like layaway for the digital age, tional; it’s a survival tactic.
BNPL allows consumers to pay over time — an attrac-
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