BUY NOW PAY LATER HELPS CONSUMERS MANAGE HOLIDAY FINANCES

Photo by CardMapr.nl on Unsplash

A survey by the Electronic Transactions Association and The Strawhecker Group found that 20% of US respondents intend to use buy now, pay later (BNPL) over the holiday season.

This year’s economic woes may impact consumers’ holiday purchasing, making flexible payment alternatives like BNPL more enticing, notes Insider Intelligence/eMarketer.

The survey also found that 72% said they were concerned about affordability, compared to 61% last year.

According to Insider Intelligence, US BNPL spending per user is predicted to climb 13.5% year on year in 2022, reaching $957.46. The average US BNPL customer spent $843.37 last year.

As consumers try to stretch their holiday budgets, BNPL incumbents such as Afterpay and Klarna are expected to benefit significantly from holiday spending.