SAN JOSE, Calif.—Purchases through buy now, pay later platforms such as Klarna and Affirm were up more than 20% in 2021 from 2020 on Cyber Monday, according to a new report from Adobe Analytics.
Millennials and Gen Z are the biggest users, the report shows.
“They’re using the companies as a budgeting alternative to credit cards they may be scared of or may not have access to. In fact, almost 90% of payments processed by the platform Afterpay are made with debit cards,” Marketplace stated in its analysis.
Afterpay customers usually spend more money: average shopping carts increase by 20% at clothing retailers with Afterpay, the study reveals.
“This is telling you that the consumer wants to use the money that they have,” said Zahir Khoja, Afterpay’s North America general manager.