As consumers face rising prices and high credit card interest rates, many are turning to Buy Now, Pay Later (BNPL) services to manage their holiday spending. Adobe Analytics forecasts that BNPL purchases will reach $18.5 billion in the final quarter of 2024, reflecting a growing trend among shoppers looking for more affordable payment options. The average BNPL interest is significantly lower than the average 22.63% charged by credit cards, making it an appealing choice for budget-conscious consumers. Recent data shows a 14.3% increase in BNPL purchases from 2022 to 2023, with expectations for continued growth. Millennials and Gen Z are leading the charge, with 39% and 38% respectively planning to utilize BNPL services this holiday season. However, concerns about over-borrowing and the lack of regulation in the BNPL industry have emerged, prompting calls for better monitoring of consumer risks. Overall, BNPL is reshaping how consumers approach their holiday shopping.
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