Holiday ‘Buy Now, Pay Later’ Spend Set To Touch New Record
Spending on buy now, pay later services during the holiday shopping period, which runs from Nov. 1 through New Year's Eve, is expected to touch $20.2 billion, an 11% increase from last year, according to data from Adobe Analytics.
This does not come as a surprise, as these services become increasingly embedded into the country’s consumption culture, with the annual BNPL spending projected to hit $116.7 billion in 2025, doubling from 2022, and more than seven times higher than in 2020.
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According to a survey conducted last month by PayPal Holdings Inc. (NASDAQ:PYPL), one of the biggest BNPL service providers, half of holiday shoppers are likely to complete their purchases using such services, if given an option.
“PayPal data shows offering BNPL leads to a 91% higher average order value for enterprises and 62% higher for small businesses, meaning it isn't just a nice-to-have, it's a proven advantage to win,” according to PayPal’s General Manager, Michelle Gill.
As this once niche offering becomes increasingly mainstream in online retail, concerns continue to mount regarding its potential impact on consumer finances and how expanding legal and regulatory scrutiny could reshape the industry.
Financial Strain On Consumers
Over the past year, a growing number of consumers have opted for buy now, pay later financing even for everyday purchases such as groceries, which ...
