Afterpay Data Reveals 96% of U.S. Customers Paid Off Black Friday Cyber Monday Purchases Early or On Time, Demonstrating Responsible Spending During Peak Shopping Season

Key Terms

buy now, pay later (bnpl) financial

A short-term payment option that lets shoppers split a purchase into smaller installments at checkout, often without interest if paid on time; a third-party lender or fintech pays the seller up front and collects the borrower’s payments later. Investors watch BNPL because it can boost sales and customer loyalty for sellers while creating new revenue streams and credit risks for lenders, similar to a store letting you take an item home now and pay in easy installments.

revolving debt financial

Revolving debt is a line of credit that a borrower can tap, repay, and tap again up to a set limit, similar to a reusable money basket or a credit card. It matters to investors because it gives a company short-term flexibility to cover expenses or seize opportunities, but large or rising balances can signal cash stress, higher interest costs, and greater financial risk that may affect earnings and creditworthiness.

soft credit checks financial

A soft credit check is a non-invasive review of a consumer’s credit record that leaves no impact on their credit score, used by lenders, employers, or service providers to glimpse credit history without formal loan approval. Investors care because widespread use can increase customer inquiries, speed onboarding, and reveal underlying credit demand trends without the drop in scores that follows full loan applications, offering insight into consumer behavior and lending pipelines.

Strong payment performance underscores how Pay-in-4 empowers consumers to shop responsibly without interest or hidden fees

DISTRIBUTED-WORK-MODEL/SAN FRANCISCO--(BUSINESS WIRE)-- Afterpay, a leading global fintech company and pioneer of the Buy Now, Pay Later (BNPL) movement, today announced that 96% of its U.S. Pay-in-4 customers who shopped during the 2025 Black Friday and Cyber Monday period paid off their purchases early or on time. The data reflects a broader trend of consumers using Afterpay as a tool to manage holiday spending responsibly—without the burden of interest charges or revolving debt that often accompany traditional credit card purchases.

The strong payment performance comes as credit card debt reaches crisis levels for American consumers. According to the Consumer Financial Protection Bureau's (CFPB) recent report to Congress—released just last month—credit card balances exceeded $1.2 trillion in 2024, with the average cardholder carrying $5,300 in monthly balance—surpassing pre-pandemic levels. Additionally, the report also noted that the share of credit cardholders making minimum payments in 2024 (and therefore facing extensive interest charges) was at its highest since 2015, while Afterpay's interest-free model and built-in safeguards help customers avoid the debt spiral that has become endemic to traditional credit card usage.

"This data is a testament to the discipline and financial responsibility of our customers," said Marni Schapiro, Global Head of Commerce Sales, Block. "During the holidays—a time when spending pressures are at their highest—our customers demonstrated that they can shop confidently and pay responsibly. Afterpay isn't just about flexibility; it's about empowering people to make smarter financial decisions without the hidden costs and stress that come with credit cards."

How Afterpay Enables Responsible Spending

Afterpay's Pay-in-4 is built with multiple safeguards designed to encourage responsible spending:

• Low Initial Spending Limits: New customers start with modest spending limits that increase only with a demonstrated history of on-time payments, preventing over-extension.
• Automatic Account Pause on Missed Payments: If a customer misses a payment, their account is paused to prevent further spending and the accumulation of debt—a stark contrast to credit cards that allow continued spending even when balances go unpaid.
• Soft Credit Checks: Afterpay uses soft credit checks to ensure customers are spending within their means, without the hard inquiries that damage credit scores.
• Financial Hardship Policy: For customers facing unexpected difficulties, Afterpay offers flexible payment arrangements without additional fees, recognizing that life happens.
• Transparent Payment Reminders: Customers receive SMS and email reminders before each payment is due, helping them stay on track and avoid late fees.

The result: 96% of Afterpay installments are paid on time, and 98% of Pay-in-4 purchases incur no late fees as of Q3 2025—a performance that far exceeds typical credit card metrics.

A Shift Away from Credit Card Debt

The holiday data aligns with broader consumer trends showing a movement away from traditional credit. According to Afterpay's research, 63% of Gen Z have moved away from credit cards in favor of alternatives, driven by growing frustration with hidden fees and financial stress.

This shift toward BNPL is accelerating, with consumers demonstrating increased engagement. During the recent Black Friday Cyber Monday period, average BNPL basket size grew 10%, indicating customers are buying more items per transaction.

"The holiday season is when financial stress peaks for many Americans," Schapiro added. "Our customers' ability to pay off their purchases on time shows that when given a responsible alternative to credit cards, people choose to spend wisely. That's something we're proud to enable."

About Afterpay

Afterpay is transforming the way we pay by allowing eligible shoppers to buy products immediately and pay over time - enabling simple, transparent and responsible spending. We are on a mission to power an economy in which everyone wins. Afterpay is offered by thousands of the world’s favorite retailers and used by millions of active global customers. Afterpay is currently available in Australia, Canada, New Zealand, the United States and the United Kingdom, where it is known as Clearpay. Afterpay is a wholly owned subsidiary of Block, Inc. (NYSE: XYZ).

View source version on businesswire.com: https://www.businesswire.com/news/home/20260115259569/en/

Media Contact: media@afterpay.com

Source: Block, Inc.