As the holiday season looms, Generation Z is focusing on prioritizing intentionality with their consumer spending and their well-being.
In its recently released “2025 Holiday Trends” report, Afterpay commissioned a consumer survey by Morning Consult. Its internal first-party product data was analyzed within the U.S. from May 1 to July 31 and compared to three months prior.
As the leading generational cohort to shy away from traditional forms of credit cards, recent data by Afterpay found that 63 percent of Gen Z are switching to alternative payment methods.
Afterpay saw 35 percent year-over-year growth among Gen Z and Millennials — buy-now, pay-later has become an attractive option for consumers, given the accumulating debt crisis and the cost of living skyrocketing. Cities like Houston, Atlanta and Miami have especially seen a rise in usage.
The company found that 90 percent of its purchases are made with debit cards, which it sees as a shift toward mindful spending habits. Mobile transactions have also seen a major increase, with a rise in usage of 38 percent versus last year.
For upcoming holiday shopping spending, clothing and shoes are topping the list. Fifty-six percent of shoppers are planning to gift the items, while 40 percent are putting them on their wish lists for receiving.
Notably, 71 percent of Americans said they are likely to make a self care purchase — in line with the growing emphasis on health and wellness (43 percent), making more time for self care (38 percent) and a desire to have stress-relieving products (37 percent). Health and beauty products top the self care (29 percent) categories for the holidays.
Some of the notable of Afterpay’s fall 2025 trends, taken directly from Afterpay’s shopping data, include “festive femininity,” “the more patterns the better,” “shine bright like a diamond,” “autumn footwear” and “add a little more.”
On the sartorial side, festive femininity embodies a romantic, rebellious style. The trending pieces are flowing skirts (up 528 percent), polka dot dresses (up 244 percent), ruffled skirts (up 227 percent) and asymmetric dresses (up 107 percent). These are paired with more edgy pieces such as structured blazers (up 62 percent) and vinyl jackets (up 28 percent) to blend boho-chic and motor-core trends into one.
The “more patterns the better” sees strong prints such as zebra (up 155 percent), checkered dresses (up 158 percent), and plaid pleated skirts (up 114 percent) making a statement, often layered on top of each other and paired with snakeskin bags (up 241 percent).
Authors of the report found that beauty-lovers are leaning into jewel-toned looks to make statements at family dinners and New Year’s Eve parties. To “shine bright like a diamond,” the top buys are botanical face oils (up 325 percent), berry lipsticks (up 150 percent), velvet blushes (up 143 percent) and dewy face mist. Other festival glam finds include face gems (up 78 percent) and blue eye shadow (up 60 percent).
Trending shoe styles for the colder months interweave comfort with edge for the season, such as mesh ballet flats. Surprisingly, peep-toe heels are making a comeback with an increase of 98 percent. Other notable footwear includes jelly shoes (up 104 percent), peep-toe mules (127 percent) and combat boots (up 40 percent). The report said to keep an eye out for slouchy boots, which are on the rise.
Accessories are getting bolder and spicing up looks. To “add a little extra,” shoppers are turning to oval sunglasses (up 631 percent), boat bags (up 382 percent), silk bows (up 231 percent) and neckties (up 126 percent) to turn simple looks into standout outfits.
