The use of buy now, pay later services like Klarna and ClearPay on Black Friday more than doubled in 2020, European data shows.
A study from payment services provider Mollie, spanning 101,000 merchants across Europe, shows a 56% increase in the overall number of transactions on Black Friday between 2019 an 2020.
Buy now, pay later services are rapidly gaining in popularity, although they still only represented 2.5% of transactions, up from one per cent in 2019. Meanwhile, mobile payment methods remain niche, accounting for just 0.25% of Black Friday transactions, up from 0.2% in 2019.
Ken Serdons, chief commercial officer, Mollie, says: "It makes sense that fintechs like Klarna, who have performed phenomenally well this year, have been so popular this Black Friday. The increase is in-line with this growing trend towards more flexibility in how consumers pay for goods."
Recent research from Capco shows that more than ten million people in the UK have purchased products or services through a buy now, pay later scheme over the past year.
However, the research also highlights related risks, with more than half of 18-34 year olds using the method having missed a payment and nearly two thirds saying it is making them spend more, potentially increasing their chances of getting into debt.
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