Study Shows Consumers are Increasingly Turning to Credit Products to Pay for Unplanned Purchases

According to a recent PYMNTS study, impulse or emergency retail purchases are now a regular part of American consumer budgets.

PYMNTS Intelligence found that 36% of consumers reported making an impulsive buy of $250 or more during the past three months.

Thirty-five percent reported making an emergency buy of $250 or more during the past 12 months. Median spend was $497 on impulse and $605 on emergencies.

This growing reliance on credit is symptomatic of underlying problems — from stagnant wages and inflation to poor savings. 

Credit is the default when there are no emergency savings. When the repairs on a house are over $2,000, even unexpected events spawn a hardship.

Lower-income and lower-credit households are especially vulnerable, confronted by high prices and limited options. 

The numbers clearly demonstrate an opportunity — and responsibility — for the credit industry to offer solutions that create stability.

Half of the consumers surveyed said they made their last major unexpected purchase using credit. 

Thirty-three percent of emergency shoppers and 35% of impulse buyers said they used credit, and 10% used BNPL.

Shoppers cited certainty and convenience as key drivers. 

According to the report, “One of the number one reasons consumers chose credit cards and BNPL for their recent impulse purchase was certainty of credit approval.” 

For 44% of BNPL users, it was their exclusive alternative.

BNPL usage is highest among lower-income customers and those who have poor credit or lower limits. 

Customers whose credit limits are below $2,000 are nearly three times as likely to use BNPL as those whose limits are above $10,000.

This convenience is not without cost. The convenience, oversight, and rapid turnaround times of BNPL impose financial strains. 

Lenders must watch these habits and account for developing risk profiles.

Installment financing is preferable to revolving credit among many. Forty-five percent of Gen Z credit users chose installment payment when they purchased on impulse. 

That figure rose to 52% when they purchased on an emergency basis.

This is true across generations. Customers prefer regular payment schedules, and installment debt becomes a key competitive strength for lenders.

High-income earners, parents, and millennials are most likely to put more money toward impulse buys next year. 

In the survey, 53% of respondents said they were worried they would not be able to cover emergency costs, and 27% said they were extremely worried. 

Surprisingly, 8% said they would be unable to cover an emergency expense of $400. 

Consumers who spend less frequently mentioned inflation, lower trust in the economy, and saving money. 

The survey reports roughly even shares of consumers who said they would increase their impulse buying and those who wouldn’t.

Among the most frequent areas of unintended expenditure are car repairs and parts and appliances — which accounts for a median of $2,112 on emergency buys. 

Clothing, groceries, and accessories are also frequent, albeit lower-priced expenditures.

Repayment behavior varies as well; young consumers choose installment financing from third parties or merchants, while older customers pay their accounts outright. 

Credit solutions should be designed to support these differences.

Consumer borrowing trends — from installment plan popularity to increasing use of BNPL — require a strategic answer. 

Lenders must rethink lending, assessing risk, and serving cash-strapped consumers.

• Develop Adaptive Products: Replicate BNPL flexibility through responsible installment credit facilities. Loans should be easy to obtain, transparent in their terms, and designed not to trap customers in debt.
• Integrate Credit Behavior Analysis: Include BNPL usage and payment behavior in models. This can help to refine risk segmentation and identify early warning signals of default.
• Enhance Financial Literacy: Provide nudges that promote sound borrowing decisions. Point-of-transaction educational prompts can shape healthier money habits.
• Monitor Regulatory Developments: Stay up to date on policy changes relating to BNPL and short-term lending. Staying ahead of compliance trends will support long-term stability and reputation.

By aligning with these behavioral trends, credit providers can strengthen loyalty and remain competitive in a rapidly changing market.