New data shows consumer spending via instalments has surged 26 per cent in three years, from $469 per month in January 2023 to $589 in January 2026.
And it's not just for concert tickets and other luxury items, with Generation X consumers (aged from 46 to 61) outspending their younger Generation Z counterparts by nearly 50 per cent a month.
Brendan Malone, chief executive of fintech company Raiz Invest, says its data reflects a cultural shift in how Australians are managing their money.
"It's households managing grocery bills, parents using BNPL to cover school expenses and families trying to make ends meet across the year," he said.
With fuel costs surging and interest rates rising in response to inflation since the Iran war broke out on February 28, cost-of-living pressures are expected to increase further.
Mr Malone said Australians are now relying on instalment payments as a budgeting tool, particularly during high-spend periods.
Not surprisingly, Christmas showed the biggest growth in payment by instalments, with December 2025 showing the highest spending in the dataset.
In that month, average monthly spend peaked at $618 per user, up nearly 10 per cent on December 2024.
The data showed buying now and paying later wasn't a fad practiced mainly by younger Australians with less spending power.
In January 2026, Generation X spent an average of $693 per month, while Millennials spent $613, Baby Boomers $543 and Generation Z $466.
Northern Rivers farmer and grandmother-of-four Pat Bastow, 68, said the family's use of buy now, pay later apps like Afterpay - once used only in emergencies - had become more frequent.
Ms Bastow and her partner, Ern, lost everything in the 2022 floods.
"My mindset is, if you don't have it now, you can't pay it back later - but with the rising cost of fuel, it's never-ending," Ms Bastow said.
"We need fuel to run the machinery, tractor and mowers."
Lena Collins, 45, said she used buy now, pay later methods strategically, saying they cost far less than a standard credit card.
A real estate agent and single mother, Ms Collins had been left with nothing after fleeing an abusive partner overseas to return to Australia.
She said stepping her payments was a way to survive and manage her finances.
"Getting a mobile phone required a $100 up-front cost, which I didn't have, but breaking it into $25 weekly payments made it possible on a pension of $1200 a fortnight," she said.
"This system has genuinely helped me survive and manage my finances after leaving an abusive situation, feeding and clothing a child and paying for fuel, gas and insurance."
Mr Malone said the growth showed the tendency towards deferring payment was becoming entrenched.
"This data shows BNPL isn't plateauing, it's embedding itself deeper into the financial habits of working Australians."
Raiz is a micro-investing platform that uses automated "round-ups", recurring deposits and lump-sum transfers to deposit customer funds into diversified portfolios.
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