Holiday season sees a 30% increase in average shopping cart size using Afterpay

Afterpay, an installment payments firm, has seen a surge in popularity among U.S. consumers during the holiday season. With a 30% increase in the average basket size compared to the previous year, the company is making waves in the retail industry.

According to Shakaila Forbes-Bell, Afterpay's resident consumer psychologist, consumers are seeking simplicity and familiarity during times of crisis, which is influencing their shopping practices. This trend is reflected in the items that are being purchased using Afterpay, such as thermal knits, socks, pajamas from Old Navy, Crocs, fleece-lined boots, and slippers.

The turbulent economy and delayed stimulus package may have contributed to consumers' interest in alternative payment methods like Afterpay. In response, other companies have followed suit. Shopify began offering "Shop Pay Installments" last spring, and PayPal introduced "Pay in 4" and allows customers to pay for purchases between $30 and $600 over six weeks.

Retailers are also reworking their stores to better suit shoppers. They are implementing complementary shop-in-shops, age-appropriate experiences, and integrated technology to provide a more personalized and engaging shopping experience. These strategies aim to attract and retain customers, increase sales, and improve overall customer satisfaction.

Afterpay expanded its program to select retail stores via a virtual, contactless card in customers' digital wallets in October. Major retailers such as Macy's have also jumped on board, announcing a five-year deal with competitor Klarna to give customers four interest-free installment payments on their purchases.

The use of in-store technology is becoming increasingly popular among retailers as a means to enhance the overall shopping experience. This includes the use of mobile apps, self-checkout kiosks, and digital signage. Age-appropriate experiences are also being implemented, catering to different age groups by offering products and services that are tailored to their specific needs and preferences.

Research from NPD Group forecasts that sweatshirts, sweatpants, active bottoms, sleepwear, and socks would comprise 31% of total U.S. apparel spending during the holiday season. With Afterpay's model, which allows consumers to make purchases and pay in installments over time, growing in popularity, it seems that this trend is here to stay.

As of 2025, brands like AE + Aerie and ESR TECH are known to offer Afterpay as a payment option. Over 13 million U.S. customers have signed up for Afterpay, and the company has around 64,000 global retail partners. The implementation of these strategies is set to continue, as retailers strive to provide the best possible shopping experience for their customers.