Core Insights - Buy now, pay later (BNPL) providers experienced significant sales growth during the November shopping holidays, driven by consumer reliance on deferred payments amid ongoing inflation [1] - The sector generated $10.1 billion in sales from November 1 to December 1, marking a 9 percent increase from 2024, with projections indicating that this figure will double by the end of the year [2] - Shoppers are expected to spend $20.2 billion using BNPL tools between November 1 and December 31, reflecting an 11 percent increase from the previous year [2] Group 1: Company Performance - Klarna reported a 45 percent year-over-year growth in gross merchandise volume in the U.S. from November 1 to Black Friday on November 28 [3] - Block, the parent company of Afterpay, Square, and Cash App, noted a 10 percent year-over-year increase in transactions during the Black Friday-Cyber Monday weekend, processing 124 million purchases [5] - Approximately 49.8 million consumers utilized Afterpay, Square, and Cash App, engaging with 1.3 million businesses [6] Group 2: Consumer Behavior - Deferred payment plans gained popularity, with average basket sizes for Afterpay increasing by 10 percent year over year, indicating consumers are purchasing more items per transaction [6] - Spending on services surged by 91 percent compared to the same period in 2024, suggesting that higher retail prices may have limited consumer spending on goods [7] - Travel and experiences payments grew by 13 percent year over year, highlighting a shift in consumer spending patterns [7] Group 3: Product Trends - Growth was observed across various categories, particularly in footwear, technology, beauty, and home goods, with Birkenstock achieving the top position in adult footwear sales [4]