Afterpay transactions more than doubled last week relative to the first week of October, Block reported, as more consumers leaned on buy now-pay later financing
This year, 80% of consumers plan to spend the same on gifts if not more than last year, Block predicted earlier this month. But with inflation squeezing budgets and credit card interest rates creeping up, more shoppers might turn to BNPL to spread out payments.
About 37% of shoppers expect to use BNPL this season, Deloitte said recently. Other survey findings put that figure at 20%. U.S. BNPL payment volume is projected to reach $75.60 billion for 2022, according to Insider Intelligence.
Across online BNPL providers, revenue on Thanksgiving Day grew 1.3% over last year, with orders up 0.7%, Adobe data indicated. Between Nov. 19 and Black Friday, online orders tapping BNPL grew 78% compared to the week prior, Retail Dive reported.
Also notable: The average order value for U.S. BNPL purchases fell by 6% last Thursday, Thanksgiving Day, suggesting consumers are turning to the payment method for smaller purchases, the software company Salesforce said.
For its part, commerce company Shopify also said Tuesday merchants using its services notched $7.5 billion in sales during the Thanksgiving weekend – a 19% increase over 2021.
By Caitlin Mullen on Nov 29, 2022
Original link