From Pymnts · PYMNTS · · 1m 40s
Young cardholders want flexible payments, not just faster tech
Younger customers say they'd use credit cards more if they could choose repayment terms at checkout, not just get better credit decisions.
In brief
Younger customers say they'd use credit cards more if they could choose repayment terms at checkout, not just get better credit decisions. Card issuers need to translate AI improvements into visible customer benefits like flexible repayment options, not just backend efficiency. Originally reported by Pymnts.
Tech alone won't change spending habits
Faster credit decisions and better algorithms don't persuade customers to use cards more. Cardholders need visible benefits they can understand and control.
AI unlocks flexible repayment options
Real-time data and automated decisioning let issuers offer installment plans after purchase or credit terms that adjust to a customer's financial situation.
Customers want to choose at checkout
JD Power found 52% of buy now, pay later users chose their plan after purchase, not at checkout. PYMNTS research shows 40% of millennials and 48% of Gen Z would use cards more with post-purchase repayment selection.
BNPL spending surged during holidays
Buy now, pay later accounted for 20 billion dollars in online spending during the 2025 holiday season, up 9.8 percent year over year. Thirty-seven percent of U.S. consumers used BNPL in the preceding 90 days.
Better data scores millions more people
Roughly 32 million U.S. adults can't be scored with traditional credit data. Experian's Lift Premium model, which includes rental and utility payments, could score 96% of adults versus 81% with conventional data.
Explainability matters for fairness
The Consumer Financial Protection Bureau and UK Financial Conduct Authority both stress that customers need clear explanations of AI credit decisions. Research links explainability to fairness and the ability to challenge decisions.
The short version
Card issuers need to translate AI improvements into visible customer benefits like flexible repayment options, not just backend efficiency.
