About $18.5 billion of our holiday purchases this year are expected to be made using buy now, pay later, according to data from Adobe. That’s a new record, up more than 11% from last year.
Typically, buy now, pay later programs let shoppers split their purchases into installments paid about every two weeks, generally without charging interest. Some also offer more traditional financing plans that do charge interest.
An earlier version of buy now, pay later? Layaway. You know: Pay now, slowly … receive later.
“In a way, the concept of buy now, pay later has been around for decades. But it’s now having a digital moment,” said Vivek Pandya, lead insights analyst for Adobe.
Pandya said buy now, pay later options have become common. Wherever people have a digital shopping cart, buy now, pay later is there.