Pay Later Plans Gain Popularity Among Parents This Season
- 67% of parents will use BNPL to finance holidays
- BNPL helps manage finances and stretch budgets
- 49% of parents use it to minimize guilt in pricey purchases
- 50% of users spread out cash flow with BNPL
- 37% take advantage of low or no interest rates
- Two-thirds of consumers plan to use flexible payment options for gifting
- Last year’s holiday season saw a 14% increase in BNPL transactions
- Online BNPL purchases reached $16.6 billion in 2023 holiday season
- Affirm updated mobile app to drive sales for merchant partners
A new survey by Splitit and Pymnts reveals that 67% of parents plan to use buy now, pay later (BNPL) options for holiday shopping. The top reason is better financial management, with 49% dividing costs over time to minimize guilt in pricey purchases. Other research shows half of users spread out cash flow and 37% leverage low or no interest rates. This season offers merchants an opportunity to acquire new customers as two-thirds of consumers value flexible payment options for gifting. Last year’s holiday season saw a 14% increase in BNPL transactions, reaching $16.6 billion. Affirm updated its mobile app to boost sales for partners.
Factuality Level: 8
Factuality Justification: The article provides relevant information about consumers’ preferences and trends in the use of installment plans during the holiday season. It cites sources such as Splitit, Pymnts, Bankrate, YouGov, Adobe Analytics, and Affirm to support its claims. The information is presented objectively without any significant digressions or personal opinions.
Noise Level: 4
Noise Justification: The article provides relevant information about the increasing use of installment plans during the holiday season and how it benefits consumers. It also mentions the growth in BNPL transactions and updates by Affirm. However, it could provide more context or data on the overall impact of this trend on the economy or consumer behavior.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the increasing use of installment plans and buy now, pay later services by consumers during the holiday season, which can impact consumer spending habits and potentially affect retail sales. It also mentions the growth of these services, such as Affirm updating its mobile app to drive sales for merchant partners.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
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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