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They鈥檙e also leading the charge in buy now, pay later (BNPL) adoption. Over the holidays, 54% of Gen Zers used BNPL, outpacing the 50% who used credit cards, per a J.D. Power survey. That鈥檚 well ahead of the general public, where only 32% used BNPL, compared to 61% who used credit cards. Gen Z鈥檚 reliance on BNPL is only growing.

The BNPL player鈥檚 revenues doubled in Q4 thanks to users鈥� more frequent purchases

Despite delays, Apple can benefit from its extensive user base and merchant acceptance to build BNPL success.

After touting a recession-proof business model, the BNPL firm slashed 19% of its workforce and will restructure to the tune of $39M.

This is especially important for BNPL fintechs as they search for long-term profitability in a historically low-margin business. Dig deeper: Check out our BNPL forecast for more information on where we think BNPL growth is headed in the US. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 three-times-weekly recap of top stories reshaping the payments industry.

The brands built on their previous BNPL partnerships, bringing Affirm鈥檚 product to Amazon Pay to grow the buy button鈥檚 reach

Read on: Check out our US Buy Now, Pay Later Forecast 2022 report to learn about what鈥檚 driving growth in the sector. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

Some 40 million people will use Klarna in the US next year, marking a 15.6% increase for the buy now, pay later (BNPL) service. Over the coming years, growth will slip into the single digits, a far cry from the 115.0% surge back in 2020.

On today's podcast episode, we discuss how a department of justice suggested breakup of Google could change search, the potential impact of Walmart鈥檚 personalized homepages and customer support, what鈥檚 next for the buy now, pay later (BNPL) space, how Tesla鈥檚 new 鈥渃ybercab鈥� could change the world of robotaxis, what charitable donations in America look like, and more. Tune in to the discussion with host Marcus Johnson, director or Briefings Jeremy Goldman, analyst Evelyn Mitchell-Wolf and vice president of Briefings Stephanie Taglianetti.

As economic pressures weigh down on consumers, 20% plan to use BNPL to help stretch their holiday budgets, per TSG and ETA.

Related content: Check out our US Buy Now, Pay Later Forecast 2022 spotlight report to learn about the factors driving growth in the sector. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client?

BNPL providers will race to adopt the technology. Afterpay and Klarna will do so by the end of the year. Both need to penetrate in-store sales, are building out debit card programs to do so, and would benefit from the extra interchange. This will help drive BNPL transaction value. Click here to view our full forecast for US BNPL payment value.

BNPL growth is slowing as the industry matures. BNPL will count more than 100 million users by 2027. Its high-growth days are in the past, with both the number of BNPL users and overall payment value decelerating. But it remains an important financing tool for consumers and has a long runway ahead: BNPL payment value will account for just 1.4% of overall retail sales in 2025, per our forecast.

How we got here: Gen Zers are more likely than any other generation to use BNPL, but this debt isn鈥檛 usually reflected in their credit scores or overall balances. Among Gen Z respondents, 50% frequently use BNPL, and we forecast 26.4 million US Gen Zers will use it  by the end of 2024.

BNPL providers approved 79% of applications in 2022 thanks to counteroffers for subprime borrowers

Marqeta Flex helps digital wallets and card issuers embed BNPL options, eliminating the need for direct integrations with merchants

This could further propel BNPL volume this holiday season as well as catapult merchants鈥� holiday volume.

Shoppers are more comfortable than ever using BNPL鈥攁nd not just during the holidays. Buy now, pay later (BNPL) volume will hit $18.5 billion this holiday season, with Cyber Monday alone accounting for just shy of $1 billion in spend, per Adobe. That鈥檚 27.6% more than BNPL holiday sales volume in 2022.