NEW YORK, Reuters U.S. shoppers are expected to spend a record 18.5 billion using thirdparty buy now, pay later BNPL services for holiday purchases in the last quarter of the year, according to projections by data firm Adobe Analytics released on Wednesday.

With many Americans recently carrying more debt, spending on buy now, pay later services is set to increase by 11.4 over the holiday season a year ago, Adobe said.

BNPL services let shoppers expand their purchasing power by paying for merchandise in monthly installments spread out over as many as 36 months; however, the most common payments are fourinstallment plans.

The expected jump in spending using BNPL exceeds the projected 8.4 increase in overall spending in the upcoming holiday shopping period, which could reach about 240.8 billion, according to Adobe Analytics. Its forecast applies to the period between Nov. 1 and Dec. 31.

That means that firms such as Klarna, Afterpay and Affirm are set to take market share away from debit cards and other forms of payment on purchases of electronics and beauty products for the holidays, a time when many shoppers increase their debt purchasing gifts. Yet some shoppers use credit cards to cover the installment payments due with BNPL services, which consumer watchdogs say could worsen their debt.

Shoppers using credit cards to make BNPL purchases risk putting themselves in a cycle of debt that is difficult to escape, said Delicia Hand, senior director of the digital…