Exclusive: BNPL purchases up by 73% at the end of 2022

Its analysis also found there was a 73% increase in demand for BNPL products in November and December when compared to the preceding six months, as consumers looked to spread costs during the peak Christmas shopping season, with £404m being spent in December alone.  

Of this, most customers were making only a single transaction – with an average cost of between £60 and £70 – however more than 250,000 customers made five or more transactions using BNPL services.  

Across the quarter, BNPL usage grew among all income and age groups, with this being most pronounced in older, more affluent, and lower risk customers. This contrasts pre-existing perceptions that these products are mainly used by the younger generation.   

Experian’s managing director of digital consumer information Paul Speirs said: “The BNPL sector has grown rapidly in recent years, and, although it’s generally thought that the younger generation are the driving force behind this, our latest analysis shows demand coming from a much wider range of consumers and income bands.   

“Now that BNPL payment information is available to all lenders, they can make better decisions based on a more complete view of their customer’s credit risk and affordability. The benefits of sharing of BNPL data also extends to helping validate the identity of a consumer.  

“This new source of information can be added to help protect lenders and consumers from the dangers of fraud.”