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Add to cart: Online shopping surges
Online retail shopping has been strong, supported by growing buy now, pay later adoption and the application of agentic AI.
July 2025
Key takeaways
- Online retail spending growth has outpaced total services spending for the last several months, according to Bank of America aggregated credit and debit card spending. Seasonal promotions and discounts appear to continue to draw consumers in, with spending during online promotions stronger than previous years.
- Though brick-and-mortar retail spending is generally boosted by these promotional periods as well, online shopping seems to be the preferred form of retail therapy. Why? One contributing factor could be an increased use of buy now, pay later (BNPL). According to Bank of America internal data, though there was a small rise in the number of BNPL users, the rate of adoption appears to be driven by more expensive transactions like furniture or travel, and not necessarily everyday items.
- Alongside consumer financial behavior, another factor supporting eCommerce expansion is the adoption of agentic AI, according to BofA Global Research. AI agents can find products that match specific criteria, find the most attractive deals and shipping times, and complete purchases automatically, leading to a more efficient and personalized shopping journey.
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