Klarna, the leading buy now, pay later (BNPL) service, observed a considerable surge in their BNPL transactions in the recent Black Friday statistics. With 29.5 per cent increase in Klarna orders compared to the previous year, Klarna’s holiday shopping survey of 15,000 respondents, spanning both the US and international markets, emphasised the widespread utility of interest-free installment payment options during the festive season. Notably, a staggering 81 per cent of respondents acknowledged the convenience of this payment method, with an even higher 89 per cent of Gen Z shoppers expressing this sentiment.
Kristina Elkhazin, Klarna’s Head of North America, shed light on a prevalent concern among US consumers regarding credit card debt this season. Over 50 per cent of consumers are apprehensive about accumulating credit card debts, with almost half expressing doubt regarding their ability to fully settle their holiday credit card bills. Bank of America Securities’ recent data highlights Afterpay as the leader in US monthly active users, with 4.2 million, closely followed by Klarna and Affirm, each boasting 3.3 million monthly active users.
This upsurge in BNPL activity during Black Friday follows a pattern observed in the previous holiday season. Data analysis by Adobe indicates a substantial 78 per cent spike in BNPL orders and an accompanying 81 per cent increase in revenue between 19th and 25th November 2023. Correspondingly, a report from PYMNTS outlines that 10.2 per cent of online shoppers availed themselves of installment payment services for Black Friday purchases last year.
The landscape of BNPL services witnesses intensified competition not only among such services but also from major retailers. Amazon’s August announcement unveiling plans to extend its installment payment service, via Amazon Pay, to other retailers’ platforms for purchases exceeding US $ 50 introduce a new dimension to this competitive market.
