Cyber Monday sales reach $12.4B driven by 'Buy Now, Pay Later'
'Buy Now, Pay Later' has accounted for $7.3B in online spending through Nov
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Spending on the highly-anticipated Cyber Monday shopping holiday reached a new record high, with consumers collectively doling out $12.4 billion online, according to the latest data from Adobe.
This is a 9.6% increase year over year and even outpaces Adobe’s initial projection, according to earlier data. However, that spending is largely being driven by "Buy Now Pay Later" (BNPL) options as Americans grapple with high inflation.
Usage of such services hit an all-time high on Cyber Monday, accounting for $940 million, an increase of 42.5% year over year. Cart sizes also rose 11% annually as shoppers leaned on the service, which allows consumers to pay in, often interest-free, installments.
RETAILERS CAUTIOUS THIS HOLIDAY SEASON TO AVOID EXCESS INVENTORY
Since Nov. 1, the "Buy Now Pay Later" services accounted for $8.3 billion in total spending, up 17% year over year. In fact, November 2023 is projected to mark the biggest month on record for the payment method.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AFRM | AFFIRM HOLDINGS INC. | 63.19 | -0.77 | -1.20% |
BLACK FRIDAY, HOLIDAY SHOPPING SEASON OFF TO A STRONG START
The Afterpay website is arranged on a laptop in Sydney. ( Brent Lewin/Bloomberg via Getty Images / Getty Images)
This underscores how consumers are still trying to buy gifts while managing their debt obligations amid persisting inflation, high interest rates and resumed student loan repayments.
For example, Americans are holding a record amount of credit card debt at about $1.08 trillion, FOX Business reported.
US NATIONAL DEBT HITS RECORD $33T
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 87.19 | +0.59 | +0.69% |
| TGT | TARGET CORP. | 121.76 | -34.24 | -21.95% |
| AMZN | AMAZON.COM INC. | 202.88 | -1.73 | -0.85% |
MORE PEOPLE ARE DELAYING PAYING UP FRONT
During the peak hour on Cyber Monday, which is between 10 p.m. and 11 p.m. ET, consumers spent $15.7 million every minute, according to Adobe, which notes the Monday after Thanksgiving remains the biggest online shopping day of all time.
However, spending throughout Cyber Week – which is the five-day period from Thanksgiving to Cyber Monday – was strong and even beat prior projections.
A consumer using a smartphone for shopping online. (iStock / iStock)
Overall, consumers spent $38 billion during the five-day period, slightly above the projected $37.2 billion and up 7.8% year over year.
The week started off with record online spending, $5.6 billion, during Thanksgiving. On Black Friday, online spending reached $9.8 billion, up 7.5% year over year. Over the weekend, on Saturday and Sunday, spending reached $10.3 billion.
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Adobe's data is not adjusted for inflation. If online inflation were factored in, there would be even higher growth in topline consumer spending, Adobe said.