According to research from Earnest Analytics’ credit card data, Payments to POS Lenders, also known as buy-now-pay-later (BNPL) apps, reported an incredible 37.1% growth in the four weeks that ended on May 27, 2024. This growth is an encouraging reversal from post-pandemic deceleration.
With the mounting pressures of increased costs for daily necessities, fuel and groceries, consumers have pulled back on spending, particularly in regards to low-income shoppers. Consumers earning between $55k-$125k increased their BNPL spending the fastest according to Earnest credit card data, while shoppers making over $295k grew the slowest.
Encouraging Growth
The 37.1% growth of the four weeks that ended on May 27, 2024, represents an acceleration from 18.6% YoY during the 4 weeks that ended May 27, 2023.
Among POS Lenders, Sezzle stood out with 57.9% YoY growth at the end of May, despite being one of the smallest US BNPL companies by market share of payments.
Market leader Affirm (+46% YoY) was the next fastest-growing in the most recent weeks, and continued to outperform the mean BNPL performance. Klarna and Pay in 4 both grew 27.2% YoY, while Afterpay grew 22.8% YoY.
For more information, visit www.earnestanalytics.com.
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