Why more Americans are turning to Buy Now, Pay Later payment plans, in 4 charts

CNN — Buy now, Pay Later services had their best day yet on Cyber Monday, with consumers spending a record-breaking $991.2 million, according to Adobe Analytics.

With holiday shopping now in full swing, US consumers are making more purchases using these services, which are known in the industry as BNPL.

So far in 2024, BNPL spending in the United States has outpaced prior years. Consumers spent a total of $75.1 billion dollars with BNPL in 2023, up from $65.6 billion dollars in 2022, a 14% increase.

Retailers across markets have increasingly adopted BNPL options because they convert window shoppers into purchasers and push those customers to check out with fuller carts, according to a recent study.

BNPL payment plans especially influence shoppers who usually spend less and are more reliant on credit cards, said Dionysius Ang, a consumer researcher and associate professor at the University of Leeds in England.

https://amp.cnn.com/cnn/2024/12/15/business/buy-now-pay-later-services-shopping-dg