U.S. Shoppers Charge Over $1B on BNPL for Black Friday, Cyber Monday
During the recent holiday shopping weekend, many financially cautious customers relied significantly on buy now, pay later (BNPL) services. The use of BNPL reached remarkable figures, especially on Cyber Monday, highlighting consumer behavior trends during this peak shopping period.
BNPL Sales Figures for Black Friday and Cyber Monday
Cyber Monday generated online BNPL sales of $1.03 billion, marking a 4.2% increase compared to the previous year. This contributed to an overall online sales total of $14.25 billion for the day. Notably, BNPL transactions accounted for over 7.2% of total online sales.
On Black Friday, BNPL services similarly performed well, with sales reaching $747.5 million. Reports indicated that platforms like PayPal experienced a 23% increase in BNPL transactions. Additionally, Zip, a digital financial services company, processed 1.6 million transactions across 280,000 locations during this critical shopping period.
Demographics and Consumer Spending Patterns
Millennials led the way in BNPL purchases, representing 51% of the total, followed by Gen Z, Gen X, and baby boomers. Popular spending categories for BNPL users included:
- Electronics
- Apparel
- Toys
- Furniture
These patterns align with trends from previous years, as consumers primarily focused on tech, electronics, and fashion items when utilizing BNPL options.
Market Insights and Predictions
Despite economic uncertainties, analysts had anticipated a robust shopping weekend. A Deloitte survey predicted consumer spending of approximately $650 million over the Black Friday to Cyber Monday period, reflecting a 15% increase from the previous year.
As noted by Vivek Pandya, lead analyst at Adobe Digital Insights, U.S. retailers implemented significant discounts during the holiday season to stimulate online demand. He emphasized that competitive deals encouraged earlier shopping, reshaping the dynamics of Black Friday and Cyber Monday.
This analysis suggests a shifting landscape in consumer behavior, where BNPL services are becoming increasingly integral to purchasing decisions during major shopping events.
