Investors warming up to the growth potential of alternative payment methods
- Buy now, pay later point-of-sale lending generated 42.5% more online spending on Cyber Monday
- In-store U.S. retail sales on Black Friday rose 1.1% over last year
- E-commerce sales were up 8.5%
- Digital payments stocks may receive a boost from the holiday season
Buy now, pay later point-of-sale lending offered by Afterpay and others saw a significant increase in online spending on Cyber Monday, with a growth of 42.5% compared to last year. In-store U.S. retail sales on Black Friday also experienced a 1.1% rise from the previous year, while e-commerce sales surged by 8.5%. These positive trends in holiday shopping indicate a potential second wind for digital payments stocks, which have faced challenges in the postpandemic era.
Public Companies: Afterpay (unknown), Mastercard (unknown)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific data from Mastercard SpendingPulse to support the claim that in-store retail sales on Black Friday rose 1.1% over last year and e-commerce sales were up 8.5%. The information is sourced and verifiable, providing a factual basis for the article’s claims.
Noise Level: 7
Justification: The article provides some relevant information about the increase in online spending on Cyber Monday and the rise in in-store and e-commerce sales on Black Friday. However, it lacks depth and analysis, and does not provide any evidence or data to support its claims. It also does not explore the consequences of these trends on digital payments stocks or provide any actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Digital payments stocks
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification:
www.wsj.com 
