BNPL Takes the Holidays By Storm: Black Friday In-Store Shopping up 442% with Afterpay

Rhea-AI Summary

On Nov. 30, 2021, Afterpay (ASX: APT) reported a 34% increase in holiday orders from last year, with BNPL spending in the U.S. soaring 230%. Between Black Friday and Cyber Monday, Gen Z shoppers rose by 11%, while in-store purchases surged 442% due to supply chain issues. Fashion and fitness categories led sales growth at 26% and 46%, respectively, while homeware and beauty items also saw increased demand. Consumers saved up to $459 million in credit card fees, with 88% using debit cards. Over 20 million customers in North America prefer Afterpay's interest-free payments.

Positive

• 34% increase in holiday orders compared to last year.
• 230% growth in BNPL spending in the U.S. within a year.
• 11% more Gen Z consumers using Afterpay during the holiday season.
• 442% increase in in-store shopping, likely due to supply chain issues.
• 8% increase in basket size on Cyber Monday.
• Consumers saved up to $459 million in credit card fees.

Negative

• None.

SAN FRANCISCO, Nov. 30, 2021 /PRNewswire/ -- Afterpay (ASX: APT), the leader in "Buy Now, Pay Later" payments, today released its consumer shopping trends from Afterpay's insights database for this year's highly-anticipated Black Friday and Cyber Monday shopping. Based on this data, consumers are choosing to shop in-store and online - with a 34% increase of orders through Afterpay this holiday season year-over-year.

Spending on BNPL in the US has increased 230%¹ in the last year and continues to surge through the busy holiday shopping period, as consumers return to in-store and shop online. Between Black Friday and Cyber Monday, Afterpay found 11% more Gen Z consumers shopping year-over-year through its platform to purchase items. After a year of accelerated digital adoption, e-commerce is still maintaining a stronghold with a 30% increase year-over-year of Afterpay users spending online. Additionally, due to supply chain issues, a staggering 442% more shoppers are buying items in-stores year-over-year rather than waiting for online orders to arrive.

Retailers specializing in the fashion and fitness categories were the most popular with shoppers this year - up 26% and 46% year-over-year, respectively. Gen Z and Millennials are looking for fresh styles, including clogs, weekender bags and trucker hats which were at the top of Afterpay shopping lists². Afterpay's merchant partners also saw an 8% increase in basket size on Cyber Monday, as consumers secured the best online deals.

Beyond fashion and apparel, consumer interest in homeware and beauty has increased. Leading home items such as air fryers, candles, coffee makers were up 22% year-over-year, while popular beauty items such as lash curlers, foundation and mascara were up 5% year-over-year - further illustrating the expanded interest of the Afterpay consumer looking to use BNPL for all lifestyle categories. 

Additional Black Friday and Cyber Monday Highlights in 2021

• Top U.S. categories:
• Fashion
• Footwear
• Beauty
• Homeware
• Fitness
• Top U.S. best-selling items:
• Clogs
• Weekender bags
• Trucker hats
• Pajamas
• Shoes

"As we celebrate another holiday season in the pandemic, consumers were eager to gain a sense of normalcy and spend on gifts for themselves and loved ones," said Zahir Khoja, Afterpay's GM of North America. "Compared to previous Black Friday and Cyber Monday weekends, we're thrilled to partner with even more U.S. merchants to offer Afterpay's convenient and flexible payment method - revitalizing brick-and-mortar spending and helping consumers budget before the new year."

With over 20 million North American customers³, Afterpay is the preferred BNPL solution for consumers looking for an accessible way to make purchases. Consumers saved up to $459m in credit card fees by making purchases with Afterpay in 2021⁴. As consumer preference transitions away from credit cards, 88% of U.S. shoppers used debit cards this holiday season to shop at nearly 100,000 of Afterpay's global merchant partners⁵.

About Afterpay Limited
Afterpay Limited (ASX: APT) is transforming the way we pay by allowing customers to buy products immediately and pay for their purchases over four installments, always interest-free⁶. The service is completely free for customers who pay on time - helping people spend responsibly without incurring interest. As of June 30, 2021, Afterpay is offered by nearly 100,000 of the world's favorite retailers and more than 20 million customers have signed up in North America alone⁷.

Afterpay is currently available in Australia, Canada, New Zealand, the United States and the United Kingdom, France, Italy and Spain, where it is known as Clearpay. Afterpay is on a mission to power an economy in which everyone wins.

¹ Source: Accenture, The economic impact of Buy Now, Pay Later in the US 
² Based on sales
³ Includes both active and lifetime customers
⁴ Source: Accenture, The economic impact of Buy Now, Pay Later in the US 
⁵ Figures released in FY 2021 results
⁶ Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms.
⁷ Figures released in FY 2021 results

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SOURCE Afterpay

FAQ

What was the percentage increase in Afterpay orders during the 2021 holiday season?

Afterpay reported a 34% increase in orders year-over-year during the holiday season.

How much did BNPL spending increase in the U.S. according to Afterpay's report?

BNPL spending in the U.S. increased by 230% in the last year.

What demographics are driving Afterpay usage during the holidays?

Gen Z consumers increased their shopping through Afterpay by 11% this holiday season.

What categories saw the most growth in Afterpay purchases during Black Friday and Cyber Monday?

Fashion and fitness categories grew by 26% and 46%, respectively.

How much did consumers save in credit card fees using Afterpay in 2021?

Consumers saved up to $459 million in credit card fees by using Afterpay.