Consumers are increasingly using mobile apps that combine buy-now-pay-later (BNPL) features with cash-back rewards to manage financial stress during the holiday shopping season. BNPL allows shoppers to split purchases into installments, while cash-back platforms offer immediate monetary returns.
This holiday season sees a competition between BNPL providers like PayPal, Klarna, and Sezzle, who are now integrating cash-back offers, and dedicated cash-back platforms such as ShopBack and Venmo Stash, which emphasize savings without credit entanglement. BNPL spending is projected to increase significantly, with Cyber Monday expected to surpass $1 billion in BNPL transactions.
Consumers are adopting these payment methods as budgeting tools, appreciating the flexibility and instant rewards offered through apps and loyalty programs. Major BNPL companies are evolving beyond simple payment splitting to create comprehensive financial ecosystems, with some offering substantial cash-back percentages on eligible BNPL purchases.
Pure cash-back platforms are emerging as strong contenders, offering real money back rather than deferred payments or points. ShopBack, for example, has expanded in the U.S.
with partnerships with major retailers and uses gamified earning models to drive user loyalty. These platforms aim to capture consumers seeking savings-first shopping experiences.
The convergence of BNPL and cash-back rewards into hybrid models is a key trend, driven by the dominance of mobile commerce. Consumers are drawn to apps that offer convenience and value, especially during times of economic uncertainty.
They desire financial tools that feel like smart money management, incorporating gamification, instant gratification, and financial education.
