NEW YORK—It’s increasingly clear that Americans are turning to alternative payment methods such buy now, pay later apps to make ends meet, a new study shows.
As numerous analysts and experts have cautioned, every BNPL transaction is a small loan or a card transaction going to another provider.
The end of last year saw the largest use of buy now, pay later (BNPL) apps on record, Fox Business said.
“Cyber Monday alone saw $940 million in purchases using BNPL apps. That’s up 42.5% year-over-year,” Fox Business said, citing Adobe Analytics’ data.
Consumers are also using BNPL options to pay for larger orders, the report added.
An 11% Increase
“The number of items in the average shopper’s cart rose by 11%, according to Adobe. Consumers cover some necessities with BNPL apps, indicating an increased need to use these apps for everyday expenses,” Fox Business stated in its analysis. “About 29% of users bought appliances and 32% bought furniture, according to C + R Research. The most common purchases, however, were clothing and electronics.”
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