Layaway Spending to Hit a Record This Holiday as Financial Strains Persist

Buy-now-pay-later services will hit a record this holiday as increasingly cash-strapped US shoppers struggle with higher prices and rising borrowing costs, according to projections from Adobe Analytics.

Online spending using those services, which stretch payments over a longer period of time, will reach $17 billion in November and December — 17% higher than last year — as shoppers use the option to help manage their budgets, Adobe said in a report looking forward at e-commerce during the holidays. Consumers, one in five of whom will use layaway to buy gifts during the holidays, have become more hesitant to make purchases and will prioritize services and essential goods this holiday season, according to the report.