Consumers don’t always realize buy now, pay later (BNPL), a new spin on the concept of layaway, is a form of credit or a loan, as they continue their holiday shopping. BNPL companies had a major jump in online sales during the week of Black Friday (Nov. 21 to Nov. 27) up 68% compared to the previous week, according to the latest Adobe Analytics. CNBC’s Small Business Survey reported higher BNPL popularity among Black and Hispanic Americans with 12% of Blacks and 13% of Hispanic Americans saying they use BNPL for holiday purchases, compared to only 5% of white Americans.
The Breakdown You Need To Know:
The BNPL market expected to reach $3.98 trillion by 2030, according to Allied Research. CultureBanx noted that here-in lies the issue, because many consumers don’t fully understand this new form of debt financing, it’s easy to get caught up in a bad financial situation. Currently, 27% of Black households are late on paying their debts. Lending Club’s Holiday Season report found that 37% of Americans plan to use financing such as personal loans, credit cards and buy now, pay later this holiday season, up from 34% in 2021.
Source: Forbes
Omni Talk is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk in 2017 and have quickly turned it into one of the fastest growing blogs in retail. 