Economic uncertainty, inflation, and high interest rates are causing consumers to blend their spending strategies, favoring Buy Now, Pay Later (BNPL) services. Major companies like Klarna, Afterpay, and Affirm are seeing increased utilization, particularly for everyday expenses like groceries, which has risen significantly over the past year. The BNPL model is gaining traction through partnerships with well-known brands and is projected to account for 1.4% of retail sales this year, signifying a shift in consumer purchasing behavior and demand for flexibility in payments.
According to an April survey from LendingTree, for example, 25% of BNPL users have spent the loans on groceries, up from 14% last year.
This past holiday season, such spending hit an all-time high of $18.2 billion, up nearly 10% over the prior year, according to data from Adobe.
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