Half of UK adults have used BNPL over past year

According to figures from Equifax, 7.4 million more people have used BNPL compared to the year before – and this isn’t expected to slow down during the festive period. Based on its latest UK BNPL Barometer, the average monthly payments made using this method have also increased by almost half in the last two years, going from £105 to £153 this year.  

Meanwhile, one in three consumers intend to use BNPL for upcoming Christmas, Black Friday or Cyber Monday shopping – with nearly a third of Christmas BNPL users stating that they will struggle to afford Christmas without the help of BNPL, up from 27% in 2021.  

Like last year, 18 to 34-year-olds are the cohort most likely to use BNPL over the coming festive period, with 42% intending to use BNPL for Black Friday and Cyber Monday. However, the research shows that 35 to 55 year-olds are going to be relying on it the most for Christmas – making up 34% of people.  

Alongside this increase in use, there has been a jump in the number of failed payments – with 17% of consumers report missing a repayment, while 46% of 18 to 34 year-olds have failed to make a BNPL repayment on time. It also found that, on average, the number of payments consumers make on BNPL from four and a half in 2021 to more than seven in recent months.  

Equifax UK’s chief strategy and innovation officer Craig Tebbutt said: “Over the last three years we have witnessed a surge in BNPL use by consumers, and the products have become an essential part of many people’s shopping experience.  

“However, while consumers are using BNPL more and making bigger payments on BNPL, we’re seeing a slower growth this year, compared to last. It’ll be really interesting to see in the next year or so how BNPL trends respond to the changing economy." 

“As with any form of credit, when shoppers use BNPL, it can be a great budgeting tool, or way to spread spending out over the festive period. Shoppers should treat BNPL in the same as other types of credit: make sure you can afford the repayments and educate yourself on the risks.

“Caution from both lenders and consumers needs to be taken to ensure repayments can be made. Equifax supports the call for regulation for BNPL, as not only will it protect consumers, but also help those with thin credit files to build up a healthy credit score.”