Ecommerce shoppers’ use of buy-now-pay-later (BNPL) was up 10% in January and February compared to last year, according to Adobe’s latest ecommerce survey.

BNPL up, revenues down. Despite this rise, revenue decreased 19% for that period. This suggests inflation is making shoppers use the payment plans to purchase lower-priced items. Last year, BNPL purchases were up 14% over 2021, and revenue from them grew 27%.

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Used most for groceries. BNPL use for groceries was up 40% YoY in the first two months. This is the biggest increase of all the categories tracked by Adobe.

“The rise of buy-now-pay-later usage for groceries tells us that consumers are likely making bigger purchases online to take advantage of special promotions and stock up on staples, thus managing living expenses in more flexible ways,” Adobe Digital Insights lead analyst Vivek Pandya said, in a press release.

Popular for furniture. Furniture saw the second biggest increase in BNPL usage, with payment plan purchases up 38% in the first two months of the year.

Why we care. Total U.S. credit card debt reached a record $930.6 billion at the end of last year, an 18.5% increase over 2022, according to the Federal Reserve Bank of New York. The average household’s credit card balance is $9,990, according to a WalletHub report. Rising interest rates mean that debt is costing consumers more than ever.

Given all this, it is clear offering BNPL is essential for ecommerce businesses. It gives consumers a way to manage their budget and make purchases without having to pay interest on what they bought. Marketers should be sure to highlight this service and its benefits to shoppers.

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