"It wasn't just shoppers with strapped budgets that boosted buy-now, pay-later services to a record-setting $1 billion in transactions on Cyber Monday. It was also the brands and fintech companies that pushed the services front and center. This holiday season, more brands deployed BNPL services with different payment options beyond the more familiar "pay-in-four" structure, whether a six-month payment plan at 0% interest or a 24-month installment loan with interest. And the services are showing up in more digital wallets."
"Tanuj Parikh, head of commercial for Cash App and Afterpay, said BNPL services have become more common across all sectors as the space has matured. They're also more often positioned at the start of the purchase journey, rather than just as a checkout button. "Retailers have gotten a lot smarter, where payments shouldn't just be a bottom-of-the-funnel thing," he said. "Doing site takeovers and having full 'surround-sound' marketing across that journey are the things that work really well.""
Buy-now, pay-later services reached $1 billion in transactions on Cyber Monday as brands and fintech firms actively promoted BNPL options. Merchants expanded beyond the familiar pay-in-four model to offer six-month 0% plans and 24-month installment loans with interest. BNPL functionality has been integrated into digital wallets such as Apple Pay (with Affirm and Klarna) and Afterpay integrations with Cash App. Retailers ran campaigns advertising 0% interest, installment terms, and merchant-specific discounts like Sephora's 25% offer for Klarna or Afterpay users. BNPL is being moved earlier in the purchase journey through site takeovers and broader marketing. Networks grew to include higher-end apparel, wellness, travel and ticketing merchants.
Read at Digiday
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