American shoppers spent a record $9.8 billion online shopping during Black Friday weekend, with that number projected to increase even further by the end of Cyber Monday, according to Adobe Analytics.
But as consumers continue to grapple with rising costs, elevated inflation, and mounting debt, many are turning to flexible payment plans, known as “Buy Now, Pay Later” options, to complete their holiday shopping.
According to a Bloomberg report, Adobe Analytics indicates that online sales of electronics, smart watches, TVs, and audio equipment were up 7.5 percent from last year, and a separate metric recorded similar upticks in footwear, sporting goods, and health/beauty products. The largest discounts were available for clothing and home goods.
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The data gathered between Friday and Monday further indicated that a growing number of these sales were made with “Buy Now, Pay Later” (BNPL) options, which jumped by 72 percent from the week before Thanksgiving.
As consumers, particularly those in younger generations, balance expenses like student loan payments and credit card debt, these flexible payment plans allow shoppers to pay off their purchases over several months. These options are especially popular with those with bad or no credit, according to the Federal Reserve Bank of New York.
These shopping trends are also expected to continue through Cyber Monday, with a projected record-setting $12.4 billion in consumer spending. According to Adobe, $782 million of that total will come from BNPL plans — up 18.8 percent from last year.
In the month of November, “Buy Now, Pay Later” accounted for $7.3 billion in overall sales, highlighting the average consumer’s struggle to manage debt obligations while also preparing for the holiday season.
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