In the kickoff to the Holiday shopping season, consumers are spending, with retail sales up 1.1% and e-commerce sales up 8.5% according to Mastercard SpendingPulse.
But you want to know what is really up? Buy now pay later. BNPL generated a staggering 42.5% more online spending on Cyber Monday this year than last year. And it was not like last year was a down year.
Mobile wallet usage was also way up with a 54% increase, led by Apple Pay according to Salesforce.
While credit cards are not in danger of being replaced any time soon this data does show that consumers like using these new payment methods. When these bills come due in January we will see whether they have the capacity to pay for their holiday spending.
For now, though, it is party time for BNPL and other alternative payment methods.
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Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.