The holiday season is a time of festive cheer and thoughtful gifting. While the holidays may evoke warm memories of sipping hot cocoa by the fireplace or gathering around the dining room table for tasty meals with loved ones, they can also evoke feelings of stress and guilt surrounding finances.
Because it is the season of gifting, the holidays can put an intense financial strain on individuals. Even though many people prepare all year for their holiday budgets, it can still be a difficult financial period for many.
The fear of the holiday shopping season is real thanks to endless wish lists and increasing prices. Economic conditions such as inflation can add an extra strain on holiday budgets. As a consumer, it becomes overwhelming when trying to budget for the holidays. As a business, it becomes difficult to attract customers and make sales. However, holiday shopping can be made easier thanks to programs like buy now, pay later.
Imagine you own an online clothing store. You create handmade, unique pieces of clothing — the perfect gift for the fashionista in your life. Your prices reflect the high-quality fabrics used and the tender care put into crafting each piece. A new customer stumbles across your e-commerce site and finds the perfect gift for their sister but it doesn't fit in their holiday shopping budget.
Normally, the potential customer would abandon their shopping cart and move on, but if you offer a buy now, pay later option, they are more likely to purchase your product. Buy now, pay later (BNPL) options are an increasingly popular offering, allowing customers to purchase products even if they don't have the full amount of money upfront.