26% of Travelers Put Travel Costs on Card Installments

A PYMNTS Intelligence report reveals that 26% of travelers opted to use credit card installments to pay for their trips, outpacing the 8% who utilized buy now, pay later (BNPL) services. The November edition of The Pay Later Ecosystem Report explored how consumers make use of credit cards, card installments, and BNPL across travel, essential expenses, and discretionary purchases, demonstrating the growing influence of payment choices on trip planning.

The data indicates that younger and higher-income consumers were more inclined to utilize card installments. Among all purchases, 45% of Generation Z consumers and 42% of millennials resorted to card installments in the three months preceding the survey. Those earning over $100,000 annually were 57% more likely to opt for card installments compared to those earning less than $50,000, suggesting that installment use can be influenced by financial planning and reward strategies alongside financial necessity.

The report highlights that 33% of consumers employed card installments for at least one purchase within the past three months, while 14% had utilized BNPL. Both methods were employed for routine expenditures as well as occasional purchases, indicating that installment payments have expanded beyond a single spending category. BNPL users prioritized payment frequency flexibility, while card installment users focused more on earning loyalty points or cash back.

Consequently, travelers booking various aspects of their trip may find it advantageous to employ multiple payment tools throughout their journey. Furthermore, the findings indicate that consumers who utilized BNPL for both essential and discretionary purchases spent an average of $1,070 during the three-month period, whereas those who used card installments spent $1,003.