A record number of price-constrained holiday shoppers are expected to use buy now, pay later services during Cyber Monday to ease the strain on their wallets, according to Adobe Analytics.
Shoppers are expected to spend between $12 billion and $12.4 billion online on Monday, with $782 million in purchases made with BNPL services, including Klarna and Affirm (AFRM.O), representing an increase of nearly 19% from last year, the data company said. .
While BNPL has been steadily growing in popularity in recent years, its use is getting an extra boost from budget-conscious shoppers trying to avoid the extra fees and interest that come with purchases made with credit cards.
Economists anticipated the holiday season would be slower than in recent years due to economic pressure on consumers facing higher interest rates and persistent inflation.
A survey by Klarna found that almost half of respondents were worried they wouldn’t be able to pay their credit card bills in full with holiday spending.
The buy now, pay later firm saw a 29% increase in orders placed by American shoppers during Black Friday, with some of the most popular items being personal electronics, televisions and kitchen appliances.
A worker sorts products during Cyber Monday at the Amazon fulfillment center in Robbinsville, New Jersey, U.S., November 27, 2023. REUTERS
“The scale of adoption (of BNPL) has become enormous. It has become very, very, very popular,” said Dan Dolev, an analyst at Mizuho Securities.
Affirm shares rose 11% on Monday after Adobe Analytics released upbeat BNPL data.
The average basket size for buy now, pay later orders on Black Friday decreased 32% compared to last year, according to a report from Quantum Metric, a sign that shoppers are not making such large purchases this year. .
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Source: vtt.edu.vn