Record-breaking buy now, pay later spending on Cyber Monday
- Buy now, pay later spending hit a record high on Cyber Monday
- BNPL usage was up 42.5% compared to last year
- Buy now, pay later services allow consumers to split purchases into smaller amounts
- Some providers charge fees and interest, which consumers may not be aware of
- Using buy now, pay later may not harm your credit score, but it won’t improve it either
- Beware of ‘loan stacking’ where consumers take on multiple buy-now-pay-later loans
- Consumers should have a good understanding of the payback terms before using BNPL
Buy now, pay later services have become increasingly popular, with a record amount of purchases made using this payment method on Cyber Monday. However, there are potential pitfalls that consumers should be aware of. Some providers charge fees and interest, which may not be clear to consumers at the outset. Additionally, while using buy now, pay later won’t typically harm your credit score, it also won’t improve it. Another potential issue is ‘loan stacking,’ where consumers take on multiple buy-now-pay-later loans without fully realizing the financial impact. It’s important for consumers to have a good understanding of the payback terms before using buy now, pay later services.
Factuality Level: 7
Factuality Justification: The article provides information about the popularity of buy now, pay later services during the holiday shopping season and potential pitfalls associated with using these services. The information is based on data from Adobe Analytics and research by Consumer Reports. The article also includes statements from spokespersons of various buy now, pay later providers. Overall, the article provides factual information and includes multiple perspectives.
Noise Level: 4
Noise Justification: The article provides information on the popularity of buy now, pay later services during the holiday shopping season and highlights potential pitfalls and consequences for consumers. However, it lacks in-depth analysis and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Buy now, pay later services
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the increasing popularity of buy now, pay later services during the holiday shopping season. While there is no mention of any extreme events or financial crashes, the information is relevant to financial topics and the impact on financial markets is discussed.
Public Companies: Adobe Analytics (ADBE), Affirm (AFRM), Equifax (EFX), Transunion (TRU), Experian (EXPGY)
Private Companies: Klarna,Sezzle,Afterpay
Key People: Ted Rossman (Senior Analyst at Bankrate)
Reported publicly:
www.marketwatch.com 
