Trend-Driven, Budget-Savvy: Afterpay Reveals What Gen Z Wants This Season

The holiday shopping landscape is experiencing a shift as Gen Z leads a movement away from traditional credit, embracing flexible payment solutions while prioritizing intentional spending and well-being when it comes to their holiday shopping preferences.  

The shift away from traditional credit

Credit cards? Gen Z is thinking of a better alternative. According to recent data, over half (51%) of Gen Z shoppers say credit cards give them the “ick,” with 63% switching to payment methods that offer more control, less stress, and importantly no interest. That’s where Buy Now, Pay Later (BNPL) comes into the picture.

With +35% YoY growth in Afterpay usage among Gen Z and Millennials, it’s clear that flexible, transparent spending is here to stay. In fact, 90% of Afterpay purchases are now made with debit cards, signaling a major shift toward mindful money habits. Mobile transactions are also booming, up 38% compared to last year. And if you're wondering where this budgeting boom is strongest, look no further than cities like Houston, Atlanta, and Miami, who are leading the charge in using Afterpay’s pay-in-four, zero interest feature.

Holiday shopping trends 

But it’s not just how people are shopping, it’s what they’re shopping for this holiday season. Clothing and shoes top the list, with 56% of shoppers planning to gift these items and 40% hoping to receive them. Health and self-care are also in focus, with 71% of Americans likely to make a self-care purchase. This is driven by a growing emphasis on health and wellbeing (43%), having more time for self-care (38%), and the desire for uplifting or stress-relieving products (37%). Popular self-care categories include health and beauty products (29%) and home comfort items (32%), while a quarter of Americans hope to receive electronics as gifts.

Fall and winter trends

Festive Feminity

Style-wise, “festive femininity” takes center stage this season, a romantic-meets-rebel mashup. Flowing skirts (+528%), polka dot dresses (+244%), and ruffled shirts (+227%) are trending hard, often paired with edgier pieces like structured blazers (+62%) and vinyl jackets (+28%). Shoppers are blending boho and moto vibes for a look that’s both soft and strong.

The More Patterns, The Better

Patterns are popping off with bold prints like zebra (+155%) and plaid pleated skirts (+114%) are making statement outfits the norm. Accessories are getting louder too, with oval sunglasses (+631%) and silk bows (+231%) flying off shelves.

Shine Bright Like a Diamond

Beauty shines bright with jewel tones and radiant skin first. Botanical face oils (+325%), berry lipsticks (+150%), and velvet blushes (+143%) are must-haves for festive glam.

Autumn Footwear

Footwear trends mix comfort and edge, with peep toe mules (+127%) and jelly shoes (+104%) making unexpected cold-weather comebacks. Combat boots (+30%) keep their steady fan base, while slouchy boots are on the rise.

Home for the Holidays

At home, hosts are embracing warmth and texture to create cozy, inviting spaces. Balloon shades (+400%), yellow rugs (+283%), and mixed metal decor (+45%) are helping turn homes into festive retreats.

What’s evolving for this holiday season

These shifts signal a broader transformation in consumer behavior that’s redefining holiday shopping and payment preferences. Younger shoppers are moving away from traditional credit in favor of flexible, transparent payment options that offer more control and less financial stress. This change reflects a deeper cultural movement toward intentional spending and prioritizing well-being, both in the products consumers choose and how they pay for them.

Holiday gifting is evolving accordingly. Clothing and shoes remain top choices, but self-care and home comfort are gaining ground, revealing a growing desire for products that support health, relaxation, and emotional uplift. Technology-enabled payment solutions like BNPL are not just convenient- they’ve become essential tools that empower shoppers to navigate these changing priorities on their own terms.

As these trends continue to unfold, they offer a compelling glimpse into the future of retail. A future where flexibility, mindfulness, and style intersect, shaping the way people shop, gift, and engage with brands during the most important season of the year. 

To access the full Holiday 2025 Report, click here. 

Afterpay first-party product data was analyzed in the U.S. between May 1 to July 31, 2025 vs. three months prior. Additionally, a consumer survey was commissioned by Morning Consult for Afterpay’s global holiday shopping survey and conducted between July 17-25, 2025.