US Holiday Shoppers Flock to ‘Buy Now, Pay Later’ Apps Klarna, Affirm

Want to understand the state of the economy? Just look to all the shoppers flocking to “buy now, pay later” services. Every holiday season brings with it close scrutiny of Americans’ spending, but this year, the gaze cast at shoppers is even more intense than usual.

The Economic State and Consumer Sentiment

Largely, that’s because no one really understands what Americans are up to. Most measures of consumer confidence suggest the mood has worsened significantly since the 2024 election, with people across the political spectrum concerned about higher prices and a stagnant job market.

Consumer behavior has never perfectly mirrored what people say about their own state of mind, but normally you’d expect such widespread fear to be reflected in their holiday shopping decisions. Not this year.

Record-Breaking Holiday Spending

So far, the topline numbers suggest spending is up significantly from 2024 and the volume of people out there shopping is also at an all-time high. According to data from the National Retail Federation, almost 203 million Americans shopped during the five days from Thanksgiving to Cyber Monday, blowing past the trade group’s predictions by almost 9% and exceeding the previous high set in 2023. With those numbers, it can’t be just rich people who are shopping.

Key Shopping Statistics

• Total shoppers: Almost 203 million Americans
• Period: Five days from Thanksgiving to Cyber Monday
• Growth: Exceeded predictions by almost 9%
• Historical Context: Surpassed the previous record set in 2023