The holidays are here, and while shoppers are filling their carts, many are looking for smarter ways to manage their spending. Buy Now, Pay Later (BNPL) solutions like Afterpay offer a modern, responsible alternative to traditional credit options. With insights from Afterpay’s recent consumer research and Black Friday/Cyber Monday (BFCM) data, here are six trends we’re already seeing this holiday season:

1. BNPL is going mainstream, especially during the holidays
   BNPL is becoming an increasingly popular tool for budget-conscious shoppers, with nearly 1 in 3 considering it for holiday purchases this season, according to Afterpay’s recent Festive Forecast research.  In fact, BNPL transactions through Afterpay increased 10% during the 2024 BFCM shopping period when compared to the same time in 2023.  
2. Free Shipping is Critical
   Staying on budget is always a focus for shoppers this time of year. That means shopping for deals! Recent Afterpay research shows that nearly half of all shoppers are planning to shop brands offering free shipping.
3. High Inflation Rates + BNPL Doesn’t Necessarily Mean Irresponsible Spending
   Among those who are stressed about holiday shopping this year, inflation is the leading cause. Pay-in-4 offers a way to alleviate those concerns by spreading the cost responsibly. In fact, last year when the U.S. saw higher inflation rates than this year, more than 97% of customers who used our Pay-in-4 products during the week of 2023 Black Friday and Cyber Monday (Nov 21-27) paid off their purchase early or on time. This is similar to what we saw in 2022 too!
4. What Customers Have in Carts This Year
   During the 2024 Black Friday and Cyber Monday weekend, the largest Afterpay item categories outside of fashion and beauty were personal care, household supplies, and health care, as consumers used BNPL for more choice and flexibility at checkout during the holidays. Meanwhile, the fastest growing items included vitamins and supplements, underwear, and lip gloss, reflecting diverse consumer interests.
5. Consumers Look for Ways to Stretch Their Budgets, Outside of Credit Cards
   Unlike credit cards with average APRs of 24%, Afterpay Pay-in-4 helps consumers spread out costs without the burden of high interest. In fact, it is estimated that consumers have saved more than $1 billion in interest costs and late fees by using Afterpay.
6. Growing Adoption of Mobile Commerce
   Online shoppers are expanding their digital preferences giving rise to mobile commerce, enabling consumers to shop, spend and save all in the palm of their hands. Apps and social media are ranked some of the top online channels shoppers are making purchases from this holiday season.

This holiday season, Afterpay is offering shoppers another tool for responsibly managing their budgets. With a Pay-in-4 offering that is free when paid on time, growing adoption across categories and strong repayment trends, Afterpay empowers consumers to enjoy festive spending while staying financially smart—one installment at a time.