Online sales reached a new record in 2023, thanks in part to the “buy now, pay later” option.
New data from Adobe released on Thursday (January 4) shows that American consumers spent $222.1 billion between November 1 and December 31 last year, an increase of 4.9 % compared to 2022.
More than half of that spending occurred in November, thanks in part to a strong “cyber week” in which shoppers spent $38 billion.
While consumers were happy to spend money online, they were also reluctant to blow their budgets as buy now, pay later (BNPL) usage hit a record high this year. According to Adobe, the installment payment method contributed to $16.6 billion in online spending, up 14% from 2022.
The season brought two more BNPL milestones: November was the biggest month on record ($9.2 billion, up 17.5% year over year), while Cyber Monday was the biggest day on record records began ($940 million, up 42.5% year over year).
“In an uncertain demand environment, retailers relied on discounts and flexible payment methods to attract shoppers this holiday season,” Vivek Pandya, senior analyst at Adobe Digital Insights, said in the release.
“The strategy was effective, driving online spending to record levels on big days like Cyber Monday and Black Friday, and 11 days saw over $4 billion in daily spending this season.”
Mobile shopping also surpassed desktop sales during the holiday season, accounting for 51.1% of sales in November and December, up from 47% in 2022. Mobile shopping peaked on Christmas Day, accounting for 63% of online sales .
“As consumers spent time with friends and family, many used their smartphones to take advantage of current offers or redeem gift cards,” Adobe said.
The numbers released Thursday are in line with the pre-holiday forecast Adobe issued in October (which predicted mobile revenue would account for 51.2% of total spending of $221.1 billion).
The rise in mobile payments is also consistent with previous research from PYMNTS Intelligence showing increasing use of mobile devices for shopping.
“Consumers are increasingly preferring mobile devices over desktops, laptops or voice-activated devices when shopping for groceries and other retail goods,” PYMNTS wrote last month. “Compared to December 2021, there was a nearly 50% increase in non-grocery retail purchases via mobile devices and a 35% increase in grocery purchases via the same platform.”
For all PYMNTS retail coverage, sign up for the daily retail newsletter.