Livestream shopping is gaining steam in the U.S., thanks to apps like TikTok and Whatnot

Livestream shopping, a phenomenon that has been wildly successful in China for over a decade, is slowly gaining traction in the U.S. market. Apps like TikTok and Whatnot are leading the charge, leveraging their large user bases to introduce consumers to the concept of live, interactive shopping experiences. This trend is worth watching, particularly in the lending space, as it may have implications for consumer credit and payment behaviors.

In China, livestream shopping has become a cultural phenomenon, with influencers and celebrities using platforms like Taobao Live and Douyin to sell products to millions of viewers. The U.S. market, however, presents a different set of challenges. Consumer behavior and preferences are distinct, and regulatory environments also differ. Still, the success of TikTok and Whatnot in attracting large audiences suggests that there may be a viable market for livestream shopping in the U.S.

As livestream shopping grows in popularity, lenders and financial institutions should take note of the potential risks and opportunities. For instance, the live and interactive nature of these shopping experiences may lead to impulse purchases, which can increase the likelihood of consumers taking on debt. On the other hand, livestream shopping may also provide new channels for lenders to reach consumers and offer targeted financial products. To watch next: how will lenders and financial institutions adapt to this emerging trend, and what role will they play in supporting the growth of livestream shopping in the U.S.?

Originally reported by cnbc.com. LendingNews adds analysis for finance & markets readers.