Did you know that 12% of Americans plan to use their tax refund to pay down Buy Now, Pay Later (BNPL) balances? According to a new Attest survey of 2,000 U.S. adults, nearly two in five plan to clear debt with their tax refunds. While that might not be surprising, what stands out is the growing role BNPL plays within that debt mix.
Tax refunds are no longer being treated as a financial windfall for spending. Instead, many consumers see them as a chance to stabilize their finances, catch up on obligations or reset after months of elevated costs. In that context, BNPL is no longer just a checkout option. For many shoppers, BNPL has quietly moved into everyday money management.
BNPL Has Gone Mainstream, Quietly
The 2026 U.S. Consumer Trends Report, based on four surveys of 2,000 adults, shows just how mainstream BNPL has become. Nearly three in ten (29%) consumers say they are likely to use BNPL in the year ahead, while another 24% say they are open to it. Ultimately, it means more than half of U.S. consumers are at least considering BNPL as part of their purchasing toolkit.
BNPL is not limited to big splurges or even one type of purchase. Over the holiday season, nearly half of consumers reported using or planning to use BNPL for a wide range of everyday and seasonal needs, including:
- Gifts for family and friends (31%)
- Travel costs (14%)
- Home items (14%)
- Food for entertaining (14%)
- Clothing for events (12%)
The generational split is worth considering, too. Gen Z and Millennials show the highest intent to use BNPL in 2026, while these same demographics are the most likely to be paying down existing BNPL debts with their tax refund. In fact, this is true of 18% of 18-24-year-olds, compared with just 4% of adults aged 55 to 64.
For specialty retailers, the data reveals an interesting consumer approach to BNPL. It is less about impulse spending and more about smoothing cash flow across moments when expenses add up quickly. Shoppers are not just using BNPL because they want more, but as a way to create predictability and control over their finances. Attest research into holiday spending found that the primary reason for use that consumers gave was to break down the cost of large purchases, but there were a wide range of other reasons – spanning from managing cash flow to avoiding maxing out their credit cards.
What Specialty Retailers Should Do Differently
As BNPL becomes embedded in everyday financial decision making, retailers need to rethink how they present and support it. Trust consistently emerges as the deciding factor when people choose financial products.
- BNPL should be framed as flexibility and predictability, not permission to overspend. Messaging that implies buyers can worry about costs later risks alienating consumers who are already feeling financially stretched. Instead, prioritize clear terms, transparent repayment schedules and honest language. It is also important to avoid tactics that encourage debt stacking. Promotions that push shoppers to layer BNPL on top of existing financial obligations may drive short term conversions, but they can erode trust and loyalty over time.
- Retailers should be intentional about where BNPL appears in the shopping journey. BNPL does not need to be highlighted for every item. Brands should experiment to find moments in which BNPL is most effective. For example, perhaps when shoppers are balancing multiple expenses, such as seasonal buying periods or special occasions.
- Retailers should carefully consider how they are messaging BNPL. Consumers have a financial understanding of the costs of BNPL, so it’s even more important to establish clearly what is being offered in exchange. For example, reinforcing durability, quality or long term usefulness may help shoppers feel confident that spreading payments over time is a rational choice for their given circumstances.
- Lastly, retailers must understand that BNPL users are often financially aware and selective. Higher earners are actually the most consistent BNPL users, with 35% saying they plan to use it, while more vulnerable groups are less likely to rely on BNPL at all. BNPL is a strategic tool for many shoppers, not a last resort.
BNPL as a Trust Signal
Of course, BNPL can’t be discussed without considering a backdrop of ongoing financial stress for many Americans. Nearly six in ten (59%) consumers say upcoming major spending periods feel moderately or extremely stressful. In that environment, BNPL is increasingly used to manage timing and cash flow, not to increase total spend.
Retailers who treat BNPL as a tool to serve consumers, rather than as a growth hack, are the ones most likely to benefit from it. When BNPL is positioned as part of a broader value and trusted relationship, it can support loyalty and long term engagement. When it is treated purely as a conversion lever, it risks hurting brand trust.
As consumer expectations continue to evolve, the most effective BNPL strategies will be those that reflect how people actually manage their money today. Thoughtful, transparent use of BNPL can help retailers meet shoppers where they are with convenience.
Joyce Adams is a Senior Customer Success Manager at Attest. Based in New York, she works with brands including Blank Street, Suntory America, U.S. Cotton, and Reddit to help them use consumer insights to answer critical business questions.
