Introduction

As the holiday season approaches, many consumers are exploring new ways to manage their spending. One trend that has gained significant traction is the Buy Now, Pay Later (BNPL) plan. This article delves into the rising popularity of BNPL, its impact on holiday shopping, and how O1ne Mortgage can assist you in managing your finances effectively.

Buy Now, Pay Later Is Part of 1 in 5 Consumers’ Holiday Plans

According to a recent survey by Experian, 20% of consumers plan to use BNPL plans for their holiday shopping this year. This payment method allows consumers to split their purchases into smaller, interest-free payments, making it an attractive option during the festive season.

On Cyber Monday alone, nearly a billion dollars were spent using BNPL plans, marking a 42.5% increase over the previous year. This surge indicates that BNPL is becoming a significant part of holiday spending strategies for many shoppers.

Household Income Not a Factor for Buy Now, Pay Later Usage

Contrary to popular belief, BNPL plans are not just for lower-income consumers. Experian’s data shows that individuals across all income levels are equally likely to use BNPL options. This trend highlights the universal appeal of interest-free payments and the convenience of spreading out expenses.

A Convenient Budgeting Tool That Avoids Interest

One of the main reasons consumers opt for BNPL plans is to manage their spending without incurring interest. With credit card interest rates averaging close to 23% APR, many shoppers prefer BNPL to avoid additional financial burdens. This method also offers the convenience of structured payments, making it easier to budget during the holiday season.

Interestingly, only 11% of consumers cited a lack of other funding alternatives as their reason for choosing BNPL. This finding suggests that BNPL is becoming a preferred payment method for its benefits rather than a last resort.

The Bottom Line

As BNPL plans continue to gain popularity, they are likely to become a staple in both online and in-person shopping. This trend is expected to influence consumer spending habits not only during the holidays but throughout the year.

At O1ne Mortgage, we understand the importance of managing your finances effectively. Whether you’re planning your holiday shopping or looking to make a significant purchase, our team is here to help. Contact us at 213-732-3074 for all your mortgage service needs. Let us assist you in making informed financial decisions that align with your goals.