Buy Now, Pay Later (BNPL) services have seen a significant increase in use in the UK, with 1 in 8 Brits or 6.8 million people using these services for the first time in 2024. This spike in new users is occurring even as the sector remains unregulated, with proposed changes not set to be enforced until 2026.
Widespread Adoption Among UK Consumers
The overall adoption of BNPL services is notable, with 42% of Brits, approximately 22.6 million people, having used BNPL at some point. This widespread use hints at the strong appeal of BNPL, despite the absence of regulatory protections currently in place. Interestingly, only 14% of respondents who had not previously used BNPL expressed that they would never consider using these services, suggesting potential growth in the future, especially once regulations are implemented.
Younger Generations Leading the Charge
BNPL usage is particularly prevalent among younger generations. An impressive 63% of millennials (aged 28-43) and 56% of Generation Z (aged 18-27) have used these services. Within the past year alone, 1 in 5 millennials (20%) and 1 in 6 members of Generation Z (16%) started using BNPL for the first time. This trend reinforces the popularity of BNPL among younger demographics who are more inclined towards flexible payment options.
Concerns About Consumer Protections and Debt
Louise Bastock from Finder highlighted the lack of key consumer protections under current BNPL offerings, such as stringent affordability checks and the right to escalate complaints to the Financial Ombudsman. She also pointed out the rising unsecured debt per UK adult, which includes BNPL debt, reaching £4,308 as of September 2024, up from £3,891 in September 2022. This increase in debt underscores the potential financial risks associated with BNPL services for consumers who may not fully understand the long-term consequences.
Risks to Financial Health
While the flexibility and minimal fees associated with BNPL services are appealing, they can also pose significant risks to consumers’ financial health. Unlike traditional credit products, BNPL does not enforce the same level of accountability, which can lead to difficulties in obtaining future credit or even involvement with debt collection agencies. As such, Bastock advises that BNPL should be used as a tool for repayment flexibility, not as a means to purchase items that may be unaffordable for consumers, particularly those struggling with overspending or poor money management.
Survey Insights
The findings are derived from a nationally representative survey conducted by Censuswide on behalf of Finder in January 2025, involving 2,000 UK adults with quotas for gender, age, and region. This survey provides a detailed snapshot of BNPL usage and consumer attitudes towards these services, highlighting both the appeal and the risks associated with their use.
Conclusion and Future Considerations
The use of Buy Now, Pay Later (BNPL) services has dramatically surged in the UK, with approximately 1 in 8 Brits, equating to around 6.8 million individuals, turning to these services for the first time in 2024. This significant growth in new users comes despite the industry’s lack of regulation, which is expected to remain unchanged until new legislative measures are introduced in 2026. As more consumers are drawn to the convenience and financial flexibility offered by BNPL, concerns about the potential risks and lack of oversight continue to mount. The popularity of these services has been fueled by their appeal to a broad range of consumers who seek to manage their expenses without immediate full payment. Nonetheless, the absence of regulatory frameworks raises questions about consumer protection and financial stability, signaling a pressing need for the forthcoming changes in 2026 to address these crucial issues comprehensively. The BNPL landscape continues to evolve, reflecting the growing demand for innovative financial solutions amidst a rapidly changing economic environment.