It’s the holiday season – and this year’s record spending makes it a happy holiday for businesses. But paying for it all is another story, so it’s important that shoppers be smart amidst the current “Buy Now, Pay Later” craze.
Holiday Spending Is Up
According to reports from Adobe Analytics and TransUnion, holiday spending is up in 2025, with record-breaking sales over the long Black Friday weekend. This year, online shopping is up almost 8%, with over $44 billion spent.
While 42% of shoppers still favored credit cards for their shopping sprees, another way shoppers may try to stretch their dollar is by using “Buy Now, Pay Later” (BNPL) loans. These short-term loans allow shoppers to pay the money back in installments, without using their credit cards.
Per Adobe Analytics, of the over $14 billion spent this Cyber Monday alone, shoppers used BNPL loans to spend a record $1 billion, attesting to their strong popularity.
The Challenges of “Buy Now, Pay Later” Loans
While they may seem convenient at the time, Buy Now, Pay Later loans can trip up shoppers if they don’t keep careful track of their spending and their payment due dates. This can be especially difficult if they’ve taken out several BNPL loans at once. In 2024, an overdue payment was made by 41% of those with BNPL loans, per Lending Tree, making it a common problem.
Also, no federal law currently exists to regulate BNPL loans, and state laws are not in agreement with each other: some states require BNPL companies to be licensed while others do not. Some states consider them to be payday loans. Multiple state attorneys general have expressed concerns about consumer protections and have taken the initiative to send letters to BNPL companies requesting more information on their practices.
In addition, in 2026, FICO scores will begin including BNPL transactions, just as they do with credit cards. This could decidedly change shoppers’ credit outlooks, as their BNPL loans will no longer operate outside the normal credit scoring system; instead, like with credit cards, a default on a BNPL loan will soon negatively impact credit scores.
How CBE Helps
If holiday overspending ends up throwing your customers’ finances for a loop, don’t worry. Our compassionate, highly trained agents can help shoppers get their finances, and credit scores, back on track with convenient payment plans that work for them. Or, if customers prefer, our online payment portal and smart IVR phone system are available 24 hours a day, seven days a week.