Dear Santa, Can I Pay Later This Year?

With credit card debt at record highs and more and more (young) consumers falling behind on their credit card payments, Buy Now, Pay Later (BNPL) services are expected to see record spending levels this holiday season. According to Adobe Analytics, BNPL spending could climb to $17 billion this holidays season (Nov. 1-Dec. 31), up 17 percent from $14.5 billion last year. Total online spending during that period is expected to grow by less than 5 percent compared to 2022, illustrating the growing importance of BNPL in times of high inflation and equally high interest rates.

“Buy Now, Pay Later has become increasingly mainstream and will make it easier for shoppers to hit the buy button, especially on mobile devices where over half of online spending will take place,” Patrick Brown, vice president of growth marketing at Adobe, said. According to Statista Consumer Insights, young Americans are particularly likely to use BNPL services, with delayed payments and interest-free installments the most popular BNPL benefits.