Amid ongoing inflationary pressures tightening household budgets, a subtle payment revolution is reshaping how Americans shop this holiday season as U.S. retail sales are projected to see minimal to moderate growth.
CFRA’s Senior Equity Analyst Caydee Blankenship and VP of Equity Research Zachary Warring reveal the shifting spending behaviors and growing influence of buy now, pay later (BNPL) options. BNPL transactions are projected to reach $20.5 billion in 2025 – a 13% annual increase – driven by tighter household budgets and the recent “fewer but pricier” gift trend. Clothing and electronics are leading the BNPL surge, with mobile-first shopping (80% of BNPL transactions) driving new consumer behavior.