Afterpay, a global fintech company and pioneer in the Buy Now, Pay Later (BNPL) sector, announced that 96% of its U.
S. Pay-in-4 customers completed their purchases early or on time during the 2025 Black Friday and Cyber Monday shopping period. This data indicates a trend of consumers utilizing Afterpay to manage holiday spending responsibly, avoiding the interest charges and revolving debt associated with traditional credit cards.
The reported strong payment performance comes amidst rising credit card debt for American consumers. According to a recent Consumer Financial Protection Bureau (CFPB) report to Congress, credit card balances exceeded $1.2 trillion in 2024, with the average cardholder carrying a monthly balance of $5,300, surpassing pre-pandemic levels. The report also noted that the share of credit cardholders making minimum payments in 2024 was at its highest since 2015, highlighting the extensive interest charges faced by many. In contrast, Afterpay’s interest-free model and built-in safeguards aim to help customers avoid such debt accumulation.
Marni Schapiro, Global Head of Commerce Sales at Block, stated, “This data is a testament to the discipline and financial responsibility of our customers. During the holidays—a time when spending pressures are 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.”
Afterpay’s Pay-in-4 product incorporates several safeguards designed to promote responsible spending. New customers are provided with modest initial spending limits, which only increase upon demonstrating a history of on-time payments. If a customer misses a payment, their account is automatically paused to prevent further spending and the accumulation of debt. Additionally, Afterpay conducts soft credit checks to ensure customers are spending within their means, without impacting credit scores through hard inquiries. The company also offers a financial hardship policy, providing flexible payment arrangements without additional fees for customers facing unexpected difficulties. Transparent SMS and email reminders are sent to customers before each payment is due, helping them stay on track.
These mechanisms contribute to Afterpay’s payment performance, with 96% of installments paid on time and 98% of Pay-in-4 purchases incurring no late fees as of Q3 2025. These figures exceed typical credit card metrics.
The holiday data aligns with broader consumer preferences showing a move away from traditional credit. Afterpay’s research indicates that 63% of Gen Z consumers have shifted away from credit cards in favor of alternative payment methods, citing frustration with hidden fees and financial stress. This adoption of BNPL solutions is accelerating, with consumers demonstrating increased engagement. During the recent Black Friday Cyber Monday period, the average BNPL basket size grew by 10%, suggesting customers are purchasing 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.”
Afterpay aims to transform payment methods by enabling eligible shoppers to purchase products immediately and pay over time, promoting simple, transparent, and responsible spending. The company operates 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.
