This holiday season has seen a remarkable surge in the adoption of Buy Now, Pay Later (BNPL) services, particularly among Gen Z and millennial shoppers. As inflation continues to impact consumer budgets, BNPL has emerged as a popular alternative to traditional credit cards, with a 23% year-over-year increase in usage reported as of November 20. Notably, 94% of BNPL transactions during this period came from repeat customers, highlighting a growing preference for this payment method among younger consumers. Surveys indicate that 62% of Gen Z and 56% of millennials have utilized BNPL for their holiday shopping, with many citing the appeal of lower interest rates and fees compared to credit cards. Despite economic pressures, consumer confidence appears to be rising, with many shoppers optimistic about their financial futures. This trend suggests that BNPL is not only surviving but thriving, as it becomes an integral part of modern shopping behavior.
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