PayPal CEO Dan Schulman appeared on CNBC yesterday reporting on the state of Black Friday this year and the surge in the use of the Buy Now Pay Later service offered through PayPal.
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“During Black Friday, our volume on buy now, pay later was up almost 400% year over year. We did some 750,000 transactions alone in one day on Black Friday,” said Dan Schulman, CEO, PayPal.
November 2021 was the first time that PayPal had experienced over $1 Billion processed through their Buy Now Pay Later option. PayPal also recorded over 1 million new first times users of the service in November showcasing its popularity this holiday season.
Buy Now Pay Later Here To Stay
Throughout the year we have covered numerous stories and reports of the growing popularity of various Buy Now Pay Later solutions.
One of the biggest benefits is the flexibility it is allowing shoppers when it comes to managing their cash flow and also avoiding debt in terms of loans or credit card fees.
The major payment gateways such as PayPal and Stripe noticed this earlier in the year, and both set about putting these options in place for their users.
Stripe paid $29 Billion to acquire market-leading service Afterpay back in August. Meanwhile, PayPal built out their own solution which they called Pay in 4.
They also joined the acquisition spree by spending $2.9 Billion to acquire Japanese buy now pay later solution Paidy.
PayPal is not alone in seeing a rise in buy now, pay later activity so far this holiday season. According to Salesforce, the use of the payment method globally during Cyber Week which runs from Nov 23rd to November 29th increased 29% year over year.
On Black Friday, in particular, Salesforce reported that 7% of global orders and 4% of those in the US used a short-term, installment payment option.
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