The trend: Buy now, pay later (BNPL) is expanding its presence in holiday spending and becoming a go-to financing tool for shoppers looking to manage their spending.

• The service drove $10.1 billion in November spending, a 9% jump YoY, per Adobe Analytics.
• On Cyber Monday, BNPL accounted for about 7% of all spending—roughly $1.03 billion—making it the biggest single day for the payment method in US history.

Why this is happening: Consumers are looking for ways to stretch their dollars.

• BNPL is also becoming more accessible as providers like Klarna and PayPal expand merchant partnerships and integrations across in-store and online channels.
• That wider availability is pulling more people in; we expect BNPL users to jump 34.5% in 2025. As shoppers become more familiar with the option—and as more spending moves online, where BNPL is easiest to use—usage keeps rising.
• Layer in the ongoing cost-of-living squeeze, which is pushing some households to look for flexible ways to manage expenses, and it is no surprise why we expect BNPL spending to rise 19.2% this year and another 14.0% next year.

Implications for fintechs and retail: While BNPL use is growing quickly, it will account for just about 1.5% of total retail sales this year.

For fintechs, that means plenty of runway to expand as more shoppers warm up to installment-based payments.

For retailers, the message is straightforward: With the cost-of-living squeeze unlikely to ease anytime soon, they should lean into value and flexibility by making BNPL easy to find and use across channels. That approach can help shoppers manage tighter budgets, nudge hesitant buyers to complete a purchase, and keep spending moving both online and in stores.