(New York, NY) Installment plans have taken many forms over the year but have traditionally been associated with discretionary retail purchases like furniture, electronics, and travel. However, new research from Auriemma Group’s latest issue of The Payments Report suggests debit cardholders increasingly view installment plans as a tool for managing unexpected expenses rather than simply financing planned purchases.

Emergency expenses now rank as the leading use case for credit card installment plans. More than one-third of cardholders say they would consider using an installment plan for an emergency expense (38%) or medical and dental expenses (33%), surpassing furniture and home improvement purchases (33%), electronics and appliances (29%), and travel or vacations (27%).

“Installment plans are no longer viewed solely as a way to finance discretionary purchases,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “Cardholders see them as a source of financial flexibility when confronted with unexpected or difficult-to-budget expenses. Shifting the conversation from shopping convenience to financial resilience.”

Emergency and medical expenses stand out as credit card installment’s predominant use cases because they align closely with how current users value the feature. Among those who used credit card installment plans in the past 12 months, the top reasons were managing cash flow (46%), gaining flexibility without applying for separate financing (38%), and having greater control over repayment timing (37%). As a result, the product increasingly resembles a financial planning tool rather than a retail financing solution.

Unlike traditional Buy Now, Pay Later or retailer-provided installment options, which are often tied to specific merchants and planned purchases, credit card installment plans can be applied across a much broader range of spending categories. This flexibility can be especially useful when unexpected costs arise, allowing cardholders to access financing after the need emerges rather than only when an offer appears at checkout.

“Historically, installment payments have been associated with retail and planned purchases,” says O’Connor. “But cardholders are telling us the greater opportunity may be helping them manage life’s surprises. Healthcare costs, emergency repairs, and other unplanned expenses don’t always come with financing options. That creates an opportunity for credit card installment plans to differentiate themselves from traditional Buy Now, Pay Later by providing financial flexibility wherever and whenever unexpected expenses occur.”

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in June 2026 among 800 adult debit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.