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Yeah, Susie, David Morris, and I did an episode a year and a half ago where we talked about buy now pay later, and one of our through lines was the BNPL bubble will eventually burst. There were a lot more ideas in that episode than just that, but that's something that we have not been correct on. Buy now pay later is definitely propelling holiday spend this year. Zak Stambor:. Absolutely.

Gen Z is the generation most likely to use buy now, pay later services to make a purchase, which makes sense, as the cohort includes younger buyers who haven鈥檛 built up credit yet but still want to finance small purchases.

The expected record-high rates will raise demand for budgeting tools, rewards focused on everyday spending, and BNPL.

Our forecast expects US retail sales to grow a respectable 2.8% this year, with ecommerce sales growing significantly faster at 8.2%.

The growing popularity of digital wallets will also boost buy now, pay later (BNPL) transactions. Europe has the largest regional share of BNPL ecommerce transaction values in the world, according to FIS. And despite new rules around BNPL in Europe, innovation continues: The EPI is set to integrate a 鈥渞esponsible鈥� BNPL solution into its pan-European digital wallet.

In just five years, retail media went from a $1 billion segment to a $30 billion segment. With US omnichannel retail media ad spend poised to reach $59.98 billion this year, per our October 2023 forecast, non-retail industries from health and fitness to restaurants and financial institutions are looking to build out their own media networks.

The spring edition of our retail ecommerce sales forecast projected that 2023 would feature some of the weakest growth in some time. We have since revised that projection down 0.7 points, thanks in part to the economic uncertainty that dragged down spending through H1 2023.

More than 35 million Gen Zers will use buy now, pay later (BNPL) by 2026. Banks that partner with BNPL companies can get an in with this generation. But Gen Z also uses traditional credit. Gen Zers have an average of $2,589 in credit card debt. This is not quite on par with millennials, but it provides a runway for banks to grow their portfolios with this generation.

Orders placed with buy now, pay later (BNPL) services grew 85% and BNPL revenues increased 88% compared with the week prior. 4. Curbside pickup use declined. As more shoppers returned to physical stores, curbside pickup fell to the wayside. The Cyber Six? Grocery stores typically enjoy a traffic bump on the Wednesday before Thanksgiving (aka Turkey Wednesday) as consumers do last-minute meal shopping.

Retail media has matured greatly since our 5 retail media networks (RMNs) worth watching. That evolution has come from growth in spend (we forecast US omnichannel retail media ad spend growth at 26.0% this year, with larger increases in off-site and connected TV), in-store innovations, and new entrants from other non-retailers.

Recession could push debt-wary credit card users to payment methods they view as less risky, like debit cards; buy now, pay later (BNPL) loans; and cash. Issuers can emphasize payment flexibility, affordable financing, and no-fee balance transfers to risk-worthy cardholders. Tailor rewards toward consumer staples.

Buy now, pay later (BNPL) usage is on the rise. Shoppers used BNPL to pay for $940 million worth of online purchases on Cyber Monday, a 42.5% increase YoY and an all-time high, per Adobe Analytics. Consumers are also taking advantage of the flexible payment service to increase the size of their carts: The number of items per order using BNPL was 11% higher YoY.

Some 54% of 25- to 34-year-olds and 44% of 16- to 24-year-olds are likely to seek out brands offering arrangements such as buy now, pay later (BNPL) and other options, per a May 2023 survey of consumers in Europe by Vodeno and Aion Bank. Clothing and footwear is the top category for cross-border shopping. Apparel is the biggest category for cross-border shopping by some margin.

Apple is furthering its push into finance with its buy now, pay later (BNPL) offering, Apple Pay Later, and its new high-yield savings account, which could tap into customers interested in financial services integration with their digital wallet, said Toplin.

And emerging methods hold significant opportunity: Consumers increasingly want to use proximity mobile payments and buy now, pay later, while account-to-account payments can reduce SMB costs relative to card payments. Mobile point-of-sale (mPOS) and software POS (softPOS) technology could attract a wider ambit of SMBs and tighten integrations.

Klarna Bank CEO Sebastian Siemiatkowski told Bloomberg TV that all employees at the Swedish buy now, pay later fintech are offered a ChatGPT-4 account and encouraged to experiment with the new tech. 鈥嬧��

BNPL is becoming a go-to for Hispanic consumers. Hispanic consumers use BNPL (buy now, pay later) more frequently than non-Hispanic consumers. Hispanic consumers are 47% more likely to use BNPL than the population average. A third (33.3%) of Hispanic consumers made three or more purchases using BNPL in September 2022, according to our survey, compared with 23.9% of non-Hispanic consumers.

We forecast that 97% of Gen Z consumers will have smartphones by 2026, and 80% of those phones will be Apple iPhones. How could Apple Pay's suite domination break, because I don't really see it? David Morris:. That stat blows me away. I love it.

They also maybe will spend the money they don't have if we get a rate cut [00:06:00] because they'll be interested in putting things on credit or indulging in buy now, pay later. Sky Canaves: Right. And buy now, pay later is still very strong in the holidays.

I had a quick look at our forecast numbers and they say that 23.3% of the UK population will be proximity mobile payment users. So that's using your mobile phone to pay at point of sale in 2024. And in the US it's 39.4%, so it is significantly higher.

That's according to both our forecast and Adobe Analytics data. So I think it just shows how important that optimization is now to get those sales. This is purely anecdotal, but I honestly think I would prefer to pay a steeper price for something and then, have free shipping than to pay a lower price and pay for shipping.

I'll put this in perspective, our forecasts show that, and this is in the U.S. alone, social commerce sales growing by more than five-fold between 2020 and 2027. 2027, we're expecting those sales to hit almost $150 billion. There's a lot of potential here to be able to monetize that with financial services being layered into the mix. This is, ultimately, about TikTok doing this. Marcus Johnson:. Okay.

鈥淏uy now, pay later鈥� schemes should be displayed prominently on the homepage.