“Buy Now Pay Later Surges 20% on Black Friday, Expected to Reach $782 Million on Cyber Monday”
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BREAKING: Buy Now Pay Later spending soars 20% compared to last year on Black Friday.
It’s also expected to jump 19% on Cyber Monday to a record $782 million.
As excess savings in the US have gone from $2 trillion to zero, Americans are relying on debt more than ever.
In other… pic.twitter.com/Rs46aOxGJe
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— The Kobeissi Letter (@KobeissiLetter) November 27, 2023
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Title: Buy Now Pay Later Spending Surges 20% on Black Friday, Expected to Reach $782 Million on Cyber Monday
Introduction
As the holiday shopping season kicks into high gear, a recent report reveals that Buy Now Pay Later (BNPL) spending has skyrocketed by 20% compared to last year’s Black Friday sales. Furthermore, experts predict that this trend will continue, with BNPL transactions on Cyber Monday expected to jump by an impressive 19% and hit a record-breaking $782 million.
The Rise of BNPL
In recent years, BNPL services have gained immense popularity, allowing shoppers to make purchases and pay for them in installments, often with no interest charged. These services have become especially prevalent during the holiday season, as consumers seek flexible payment options to manage their purchases without straining their budgets.
Black Friday Surge
Black Friday, traditionally known for its unmatched discounts and frenzied shopping, has witnessed a significant surge in BNPL spending. This year’s 20% increase compared to 2022 indicates that consumers are increasingly relying on this payment option to fulfill their shopping desires.
Cyber Monday Projections
Cyber Monday, the online shopping counterpart to Black Friday, is expected to shatter records in BNPL spending. Forecasts predict a staggering 19% increase, reaching a monumental $782 million in transactions. This surge further underscores the growing reliance on debt as Americans tap into BNPL options to finance their holiday purchases.
Excess Savings Depletion
One of the factors contributing to the surge in BNPL spending is the depletion of excess savings in the United States. In the wake of the pandemic, Americans accumulated approximately $2 trillion in savings due to reduced spending opportunities. However, as the economy rebounds and people resume their normal consumption patterns, these excess savings have diminished to zero. Consequently, consumers are turning to BNPL services to bridge the gap between their spending desires and their available funds.
Implications and Concerns
While BNPL services offer convenience and flexibility, there are concerns regarding the potential long-term impact on consumer debt. With Americans increasingly relying on debt to sustain their purchasing power, experts worry about the financial strain this may place on individuals in the future. Financial literacy and responsible borrowing practices are essential to ensure that consumers do not fall into a cycle of debt.
Conclusion
The surge in BNPL spending on Black Friday and the projected record-breaking numbers for Cyber Monday highlight the growing reliance on these payment options during the holiday shopping season. As Americans tap into BNPL services to fulfill their shopping desires, it becomes crucial to strike a balance between convenience and responsible financial management. With the depletion of excess savings, it is imperative for consumers to exercise caution and make informed decisions when utilizing BNPL services to avoid potential debt traps..
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@KobeissiLetter said BREAKING: Buy Now Pay Later spending soars 20% compared to last year on Black Friday. It's also expected to jump 19% on Cyber Monday to a record $782 million. As excess savings in the US have gone from $2 trillion to zero, Americans are relying on debt more than ever. In other… twitter.com/i/web/status/1…
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