Missed BNPL repayments up 30%

Managing repayments is difficult for more users, with 41% missing a repayment – up from 11% last year.

The research found the average spend was £396 per person.

BNPL has been a lifeline for 58% of the service users trying to navigate the rising cost of living, Credit Karma found.

The number of BNPL customers who have had their credit score affected by usage of the service is 45% - up from 43% in 2021.

The news that payments will be reported to credit reference agencies in the future made 61% of BNPL users feel more confident in using the services.

Spending on essentials is set to increase over the summer, with 64% anticipating a rise in the amount they’ll pay toward their bills, and 53% expecting to spend more on food and drink, and others (37%) will find their expenditure rise for essential household items as 52% of BNPL users had to increase the amount they borrow to keep up with the rising cost of living.

Ziad El Baba, general manager at Credit Karma said: “As the cost of living continues to soar, consumers are increasingly relying on buy-now, pay-later.

“While this can be a great tool for spreading out costs over time, it can be an easy way to spend beyond your means, which can lead to a cycle of debt for those who need to use credit cards, overdrafts and loans to make repayments toward their buy now, pay later debts.”