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Holiday shoppers in 2026 are moving fast, comparing more options, and expecting less friction. For SMBs, that means the merchants who get found earlier and make buying easier are more likely to win the sale. AI helps people discover and compare products. BNPL helps them feel better about paying for them. Used together, they can turn holiday interest into completed orders.
While the broader retail industry continues to explore long-term AI and BNPL e-commerce trends, small businesses need immediate, tactical steps to capture demand this season.
Key takeaways
They are using AI and comparison tools earlier in the journey, which means product pages need to answer questions faster and with less friction. PayPal's 2025 consumer survey found that 40% of Americans have used AI for a purchase in the past year, and 59% have used or plan to use AI for shopping, with Gen Z (61%) and millennials (57%) leading the way.1 The same pattern is showing up more clearly as holiday demand builds in 2026.
The practical takeaway is simple: shoppers do not want to dig for the basics. They want to know what the product is, how it compares, and whether the payment feels manageable before they commit.
AI can surface relevant products, summarize differences, and help shoppers search in the language they naturally use. That makes it easier for them to move from a general idea, like a holiday gift or a replacement item, to a short list they can actually compare.
For merchants, the biggest opportunity is product data. Clear titles, accurate attributes, current pricing, strong descriptions, and clean shipping details make it easier for AI tools to recommend the right item and easier for shoppers to trust what they see.
If a shopper asks an AI assistant for a gift under $800, the best answer is not just a product name. It is a product name, a clear comparison point, and the payment option that helps the shopper move forward. For a full checklist of product-data fixes, see 35 tips to optimize your products for AI discovery.
BNPL helps reduce the hesitation that comes with higher-ticket purchases and holiday budgets. When shoppers see a familiar flexible payment option, they are more likely to keep going instead of pausing to rethink the total.
Nielsen’s B2C SMB Insights report, commissioned by PayPal, found that 50% of shoppers agree BNPL makes them more likely to purchase and 43% said they would abandon an SMB cart without Pay Later2 . That is why presentment matters. The earlier shoppers see flexible payment options, the more useful those options become.
Don't wait until the final checkout screen to mention Pay Later. Put it on product pages and cart pages while shoppers are still comparing options. PayPal internal analysis found that adding upstream messaging and/or a second button lifted total sales by 4.4% after three months.3
AI gets the shopper to the right product. BNPL helps them say yes. The strongest results happen when merchants connect those two moments early, instead of treating discovery and checkout as separate jobs.
In 2026, shoppers are deciding more quickly, and they check out when the product feels right and the payment feels manageable. You don't need to overhaul your store for that. Just make sure shoppers can find what they want and pay their way, before they have time to hesitate. Get that right early, and the rest of the season gets easier.
Ready to make Pay Later visible on your product pages? See PayPal Installment Payments for business. Already showing Pay Later? Add dynamic messaging to your product and cart pages.
- The small business guide to getting paid and growing this holiday season
- Get paid for the holidays: a smarter checklist for seasonal selling
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