Afterpay: Shoppers to spend more this Christmas, nearly half will use BNPL
Leading Buy Now, Pay Later (BNPL) provider, Afterpay has released its latest festive season insights, revealing key consumer shopping trends from the 2023 holiday season and a preview of what to expect in the upcoming Christmas period.
The Festive Insights: Unwrapped report from Afterpay via Ideally Insights Platform highlights a resilient consumer spirit despite economic challenges with three in five (59%) Australians planning to spend the same or more on gifts this Christmas compared to last year.
Australians are adapting their shopping strategies with the report showing that almost half of consumers plan to take advantage of Black Friday sales. This early shopping trend is expected to continue, with distinct spending spikes during Cyber Week and the week leading up to Christmas.
The preference for flexible payment options is also on the rise. Among those who plan to use BNPL services this holiday season, 41% will use BNPL to buy at least half of their presents, citing budgeting and money management as key benefits. 70% of younger shoppers intend to use BNPL services.
Mobile shopping is set to dominate with festive mobile sales projected to be three times greater than in-store purchases this holiday season.
When it comes to what’s on Christmas lists this year, one-quarter (25%) of Australians would most like to receive a gift voucher, get their hands on travel and experiences (14%), clothing, footwear, and accessories (11%), and electronics and technology (8%).
Self-care is on the rise, with almost one-third of those surveyed (31%) planning to spend money on themselves this festive season. Women are more likely to spend more on others and less on themselves compared to last year.
Afterpay Asia Pacific executive vice president and country manager, Katrina Konstas believes this year’s festive spending season is set to reflect a strong shift towards mobile commerce, with consumers increasingly seeking flexibility and convenience for their Christmas shopping.
“Our data shows that shoppers are planning ahead, starting their holiday purchases earlier than ever, and using BNPL to spread the cost of gifts over four more manageable payments. Despite economic pressures, Australians remain committed to making the most of the festive season, and we’re seeing a growing focus on self-care and the joy of shared experiences.”
During the 2023 holiday season, a record 3.2 million Australians and Kiwis used Afterpay to make purchases, with 35.4 million orders placed, averaging 267 orders per minute. The average spend per customer was $1,400, with an average frequency of 10.3 transactions.
