ATLANTA — Most U.S. consumers are open to artificial intelligence recommending pay-later financing options during the shopping process, but they still want to make the final decision themselves, according to a new survey conducted by PYMNTS Intelligence and released by Splitit.
The survey of 2,034 U.S. consumers found that 61% would allow an AI shopping assistant to recommend a pay-later option for at least one common purchase category. Among Generation Z consumers, that figure rose to 80%.
The report, The Pay Later Ecosystem Report: Consumers Will Let AI Recommend Pay Later, But They Want Control, found that while consumers are increasingly receptive to AI-assisted shopping, they place a premium on transparency, control and maintaining authority over purchasing decisions.
What Research Makes Clear
“Our research makes it clear that consumer trust in AI-assisted commerce is real but conditional,” Karen Webster, CEO of PYMNTS, said in a statement. “People are open to AI guidance, as long as they control the final decision.”
The findings also suggest consumers increasingly prefer installment payment options tied to existing credit cards over traditional buy now, pay later (BNPL) products that require opening new credit accounts.
According to the survey, 36% of respondents reported using card-linked installment plans during the previous three months, compared with 12% who used standalone BNPL services.
Flexibility Being Sought
Splitit CEO Nandan Sheth said the findings indicate consumers are looking for greater flexibility with existing credit rather than additional borrowing.
“As AI becomes more integrated into buying journeys and commerce expands beyond traditional checkout, pay-later solutions that require new applications or credit decisions become friction points,” Sheth said in a statement.
The research found consumers overwhelmingly favor AI as an adviser rather than an autonomous decision-maker. Twenty-eight percent said requiring their approval before completing a purchase would make them more likely to trust AI-generated payment recommendations, while only 2% said they wanted the process to be fully automated.
Protecting credit scores also emerged as a top priority. Fifty-nine percent of respondents identified credit score protection as an essential feature when evaluating AI-selected pay-later options, ranking it ahead of obtaining the lowest total borrowing cost, the lowest monthly payment or avoiding a new loan.
Affordability Outweighs Rewards
The survey also found affordability outweighed rewards programs as a purchasing consideration. Twenty-four percent of consumers said finding the lowest-cost payment option was their top priority, compared with 18% who prioritized maximizing credit card rewards.
Generational differences were more pronounced than income differences, according to the report. Younger consumers, particularly Gen Z, were more likely to embrace AI for budgeting, credit monitoring and payment recommendations, while older consumers were more skeptical.
Sixty-four percent of Baby Boomers and 40% of Generation X respondents said they would not allow AI to choose a pay-later option in any purchase category, compared with 22% of Millennials and 20% of Gen Z respondents.
Implications for Merchants
The report said the findings have implications for merchants, card issuers and financial technology companies as AI becomes increasingly integrated into online, mobile and in-store shopping. Researchers concluded that consumers are seeking payment options that build on existing financial relationships while minimizing application requirements and additional credit decisions.
Splitit said it has endorsed Google’s Universal Commerce Protocol, an open standard designed to support AI-driven, or agentic, commerce, as the company positions its card-linked installment platform for greater use in AI-assisted shopping.
