Buy now, pay later services a big hit among US shoppers during Cyber Monday

economictimes.indiatimes.com:

Cyber Monday to relieve stress on their wallets, according to Adobe Analytics.
Shoppers are slated to spend between $12 billion and $12.4 billion online on Monday, with $782 million of purchases made with BNPL services, including Klarna and Affirm, representing a surge of nearly 19% from last year, the data company said.

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Affirm shares gained nearly 12% on Monday after Adobe Analytics released the upbeat data. That stock has more than tripled in 2023, boosting its market value to more than $8 billion on the growing popularity of BNPL services. Rival Upstart Holdings rose 2.6% on Monday; its shares have gained nearly 90% so far this year.

BNPL has consistently been growing in popularity over the past several years, but its usage is getting a further boost from budget-conscious shoppers trying to avoid the additional fees and interest that come with purchases made through credit cards.
«The scale of the adoption (of BNPL) has just gotten so big. It's become really, really, really popular,» said Dan Dolev, an analyst at Mizuho Securities.
Economists anticipated the holiday season would be slower than recent years due to financial pressure on consumers who are dealing with higher interest rates and lingering inflation. However, early indications from Monday's shopping suggests consumer spending looks to have remained steady even as consumer finances have deteriorated from post-pandemic strength.
A survey by Klarna found nearly half of those surveyed