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Checkout finance boosts sales on Black Friday weekend 2022

Written by Marketing Team

Checkout finance played a major role in this year’s Black Friday sales. 

Data from the Divido platform shows credit activations were 50% higher than in 2021. The sum of activated credit also increased 23%, suggesting retail finance gave a significant boost to this year’s Black Friday weekend.

The big picture

Data from Adobe Analytics suggests Black Friday spending was up in the US, but still not back to pre-pandemic levels. Cyber Monday, on the other hand, was the biggest day ever for online sales.

Data from Divido’s own platform supports these figures. Credit activations were 50% higher compared to Black Friday weekend last year. The sum of activated was also 23% higher.

However, the Average Order Value (AOV) of purchases was down 18% compared to last year.

This suggests more people than ever were using retail finance to pay for their Black Friday and Cyber Monday shopping, but spending less on average.

Why might this be the case?

Given the ongoing cost of living crisis, a higher number of credit applications at a lower AOV appears to be driven both by necessity and an increased perception of retail finance.

Customers who were comfortable last year to spend higher amounts through retail finance may have found that rising inflation has reduced their real income, meaning they were unable to commit to the same loan values this year.

Meanwhile, customers who were able to pay out-of-pocket for Black Friday deals last year may have been tempted to choose finance this year for the same reason. Many commentators have pointed out that Buy Now, Pay Later and other retail finance transactions are soaring at this time.

This may also point to the fact that retail finance is becoming more popular, not just as a response to the cost of living crisis, but as a legitimate way for customers to manage their finances.

More people than ever were using retail finance to pay for their Black Friday and Cyber Monday shopping, but spending less on average.

What does this mean for retail finance?


An overall increase in retail finance volumes is encouraging for retailers given the decline in retail spending generally.


The 50% boost in volume seen through the Divido platform supports evidence from elsewhere that consumers are looking for flexible ways to support their spending. Retailers should be taking advantage of the opportunity to bolster their sales.


However, they must temper their appetite for increased options at the checkout by ensuring their duty of care to consumers. These changes in consumer behaviour are the result of a depressed economy, and critics of Buy Now, Pay Later (BNPL) worry that consumers are taking on unmanageable levels of debt.


Those hoping to implement a finance solution should consider their customers and the type of items they offer finance against. They must also look to partner with providers who provide robust affordability checks to protect vulnerable consumers.


Divido works with fully regulated lenders that carry out full credit worthiness checks. Our best-in-class user experience provides the right amount of friction to ensure your customers and brand are protected.


To find out why now is the right time to launch a sustainable retail finance strategy with Divido, click the link below to download our latest whitepaper.

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