On Tuesday, Affirm Holdings Inc
A Clear Need To Boost Peak Holiday Shopping
The National Retail Federation finds that Affirm's move shows the importance of in-store shopping as U.S. holiday sales growth is expected to slow in December as well after the November slowdown. Shoppers are increasingly delaying payments as U.S. credit card balances hit record highs with the rise of defaults. financial services tech firm FIS data shows that buy now, pay later (BNPL) services make about 5% of e-commerce payments across the globe and they are expected to rise to 6% by 2026. On Cyber Monday, the number of customers opting for BNPL skyrocketed 42.5% YoY, with Adobe Analytics data showing that this mode of payment resulted in shopping sprees worth $940 million.
Moreover, recent Affirm research showed that more than 54% of Americans are looking for retailers to offer a buy now, pay later option at checkout. Moreover, Affirm's senior vice president of revenue Pat Suh revealed that company research showed that without Affirm, 76% of consumers either delay or not make a purchase.
Affirm Partnered With Another Giant At The Beginning Of The Holiday Season
On Black Friday, Affirm kicked off the holiday season by partnering with e-commerce giant, Amazon.com Inc
Although BNPL has been increasingly popular over the past years, its appeal is strengthening further in this gloomy macroeconomic climate which is making consumers more budget-conscious who appreciate the opportunity to avoid costs and interest related with credit card purchases. But even with BNPL, the holiday spending outlook remains sluggish with concerns being strengthened with early discounts from high-end retailers like Bergdorf Goodman on New York's Fifth Avenue.
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