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Buy now, pay later loans have become in a relatively short time a popular financing option for consumers, especially for holiday-season shopping. But now, that’s increasingly true not just for gifts, but for everyday purchases as well, according to data from payment-solutions and card-issuing platform provider Marqeta Inc.
Based on its platform data, Marqeta found that holiday shoppers financing purchases with a BNPL loan started their shopping before Thanksgiving. BNPL purchases made using the platform spiked 72% from the Tuesday before Thanksgiving through Thanksgiving Day, compared to the same period a year ago. But BNPL volume dropped 15% from Black Friday through Cyber Monday 2023, compared to the same period a year earlier.
According to Marqeta’s “2023 State of Credit” report published earlier this year, 22% of respondents in the United States said they planned to finance their holiday purchases using BNPL.
Marqeta’s service includes offerings from such BNPL providers as Klarna AB, Affirm Holdings Inc., Afterpay Ltd., and Sezzle.
In addition to financing holiday gifts, consumers are using BNPL loans for everyday purchases this holiday season. From Dec. 1 through Dec. 7, BNPL purchases in restaurants and bars were up 23% compared to the same period last year, according to Marqeta. In addition, discretionary spending for electronics, jewelry, and sporting goods financed through a BNPL loan was up 21% compared to the year-ago period.
Consumers are also using BNPL to cover travel costs. During that Dec. 1 to Dec. 7 period, BNPL spending on air travel was up 34% year over year.
