A record number of price-conscious holiday shoppers are expected to use buy-now, pay-later services for Cyber Monday to relieve the pressure 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 of purchases made with BNPL services, including Klarna and Affirm ( AFRM.O ), representing a nearly 19% jump from last year, the data company said. .
While BNPL has grown in popularity consistently over the past few years, its use is getting a boost from budget-conscious shoppers trying to avoid the extra fees and benefits that come with purchases made through credit cards.
Economists expect the holiday season to be slower than in recent years due to economic pressures on consumers dealing with higher interest rates and lingering inflation.
A survey by Klarna found that almost half of those surveyed were worried that they would not be able to pay their credit card bill in full from holiday spending.
The buy-now, pay-later firm saw a 29% increase in orders placed by US shoppers on Black Friday, with some of the most popular items being personal electronics, televisions and kitchen appliances.
An employee sorts products during Cyber Monday at an Amazon fulfillment center in Robbinsville, New Jersey, US, November 27, 2023. REUTERS
“The scale of acceptance (BNPL) has just become so large. It’s become very, very, very popular,” said Dan Dolev, an analyst at Mizuho Securities.
The stock jumped 11% on Monday after Adobe Analytics released upbeat BNPL data.
The average basket size for buy-now, pay-later orders on Black Friday declined 32% from last year, according to a report from Quantum Metric, a sign that shoppers aren’t making big purchases this year.
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Source: thtrangdai.edu.vn/en/
