"Between November 1 and December 31, Adobe estimates that American shoppers will spend more than $20 billion online through BNPL plans, an 11% increase from 2024. "This is roughly $2 billion more than the 2024 holiday season, when BNPL drove $18.2 billion in online spend," the company said. " BNPL usage on Cyber Monday is expected to hit a new milestone and cross $1 billion ($1.04 billion, up 5% YoY).""
"Among the biggest users of BNPL plans are Gen Z and millennials, who might see them as a way to make shopping easier in the short term. However, such plans could cause problems for them in the long term if they aren't careful. In June, FICO announced plans to integrate BNPL data into its credit scores beginning this fall. "These scores provide lenders with greater visibility into consumers' repayment behaviors, enabling a more comprehensive view of their credit readiness, which ultimately improves the lending experience,""
Americans are expected to spend almost $12 billion on Black Friday purchases and similarly strong sales on Cyber Monday. Between November 1 and December 31, shoppers are projected to spend more than $20 billion online through Buy Now, Pay Later (BNPL) plans, an 11% increase from 2024. BNPL usage on Cyber Monday is expected to cross $1.04 billion. BNPL customers pay a portion upfront and then scheduled installments, with services like PayPal, Klarna, Affirm, and Afterpay often offering interest-free plans. Gen Z and millennials are among the heaviest BNPL users, raising concerns about long-term repayment and credit impacts as FICO will add BNPL data to scores.
Read at Business Insider
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