NEW YORK—U.S. shoppers are expected to spend a record $18.5 billion using third-party buy now, pay later (BNPL) services for holiday purchases in the last quarter of the year, according to projections by data firm Adobe Analytics released on Wednesday.
With many Americans recently carrying more debt, spending on buy now, pay later services is set to increase by 11.4 percent over the holiday season a year ago, Adobe said.
BNPL services let shoppers expand their purchasing power by paying for merchandise in monthly installments spread out over as many as 36 months; however, the most common payments are four-installment plans.
The expected jump in spending using BNPL exceeds the projected 8.4 percent increase in overall spending in the upcoming holiday shopping period, which could reach about $240.8 billion, according to Adobe Analytics. Its forecast applies to the period between Nov. 1 and Dec. 31….