BNPL Platforms See Increased Usage During Holidays
- Affirm updates its app for the holiday shopping season
- Consumer spending through BNPL platforms increased by 14.3% last year to $75 billion
- 80% of active Affirm users download the app
- Redesigned app for easier payment management and credit offers
- Affirm earns money from transactions and interest charges up to 36%
- Consumers turn to BNPL services to manage inflation
Affirm has updated its app to improve the user experience and make managing payments easier amidst rising inflation. Last year, consumer spending through buy now, pay later (BNPL) platforms increased by 14.3% to $75 billion during the holiday season. With 80% of active users downloading the app, Affirm has redesigned it to help customers find credit offers and view their purchasing power more easily. The company does not profit from transaction data via advertising or marketing but earns money through individual transactions and interest charges up to 36%. As inflation continues to impact consumers, BNPL services are being used to manage cash flow and access low or no-interest financing.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Affirm’s new features and updates, citing statistics from Adobe Analytics and a survey by YouGov and Bankrate. It also includes quotes from the company’s executives to support its claims. However, it could provide more context on how these changes will impact the business and consumers.
Noise Level: 3
Noise Justification: The article provides relevant information about Affirm’s new features and updates aimed at improving user experience during the holiday shopping season. It also mentions the growth of BNPL platforms and consumer preferences for credit card alternatives due to inflation. However, it lacks in-depth analysis or exploration of long-term trends or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Affirm, a buy now, pay later company, and its new features aimed at improving user experience during the holiday shopping season. It also mentions that consumers are turning to BNPL services to manage inflation. These topics are related to financial topics but do not directly impact specific financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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