In its latest research report, Splitit teamed up with Pymnts for a survey of more than 7,000 U.S. consumers to gauge stress levels amid rising economic uncertainty. The report found rising financial strain with anxiety reaching new levels — especially among parents and younger adult consumers — highlighting shifting approaches to financing.
“From trade turbulence to market volatility, Americans are navigating a growing list of financial challenges,” said Nandan Sheth, chief executive officer of Splitit. “Consumers are feeling very anxious at the moment.”
Across all consumers more than 53 percent told the company that they are concerned about affording unexpected expenses in 2023 citing rising anxiety over economic uncertainty. This percentage rises to 63 percent of Gen Z consumers. The authors of the report said the report’s findings are “especially crucial as leading indicators point to a broad decline in consumer confidence, driven by worries over the impact of tariffs on household finances.”
Survey respondents listed emergency car repairs (42.9 percent) and home repair costs (34.3 percent) as just two of the unplanned expenses that “often come with a hefty price tag.” Home repairs are highlighted in the report as the most expensive category, carrying a median spend for consumers of $2,112.
Half of consumers cited the rising costs of goods as the top reason why they expect to make fewer impulse purchases this year. Still, 36 percent of consumers said they made an impulse purchase of at least $250 in the last three months, with a median spend of $497.
Citing consumer anxiety, Sheth said the company “[sees] consumers becoming more strategic in managing unplanned expenses, balancing financial stability with flexible payment options. Credit card-linked installments provide a smart way to handle life’s surprises, allowing shoppers to leverage their existing credit lines while maintaining financial flexibility. With many consumers already accustomed to using their credit cards for these types of purchases, this approach offers a seamless and responsible way to stay in control in today’s uncertain economy.”
Overall, the research found that consumers are relying on both credit cards and alternative financing to manage emergency and impulse spending. According to the report, only 9 percent of consumers use buy now, pay later for emergency purchases, instead defaulting to credit cards. Thirty-eight percent of Baby Boomers said they rely on credit cards for emergency costs.
Importantly, the findings found that “credit accessibility continues to shape purchasing behavior.” Consumers are more likely to finance unexpected expenses when they have strong credit while those who hesitate to make unplanned purchases often have below-average credit and limited financing options.
When asked about their spending behaviors for BNPL, 45 percent of users said that knowing their purchase would be approved was a key factor in their decision to use BNPL. Forty-eight percent of consumers who made their latest impulse purchase with a credit card paid it off in full at the next statement, while 30 percent used installment plans. Unsurprisingly, Gen Z is leading the way in the shift toward credit card-linked installment plans with 24 percent reporting the use of merchant-offered installment plans — a rate that doubles the rate of older generations.
