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Some 30% of British adults have used a Buy Now Pay Later (BNPL) service to make at least one payment over the last year as of August 2023, according to research by Clearpay.
According to findings, BNPL was most popular among Millenials and Gen X, at 41% and 36% respectively.
The ‘Economic Impact of Clearpay in the UK’ report, which was produced in conjunction with Oxford Economics, highlighted how BNPL helps mitigate financial stress as a driving factor for use.
Nearly four in five (78%) of respondents said that the service helped them reduce the stress related to the cost of large purchases, while a further two-thirds (65%) said that it helped mitigate the stress associated with festive spending.
Respondents also expressed that BNPL helped them reduce financial worries, especially when compared to credit card spending, as some 45% of BNPL customers surveyed perceived the tool to be less stressful than credit card borrowing. This was compared to just 10% who said they found credit cards the less stressful option of the two.
Significantly, nearly four in five (78%) respondents said they found BNPL cheaper than other credit payment options, with a similar proportion (77%) indicating that it helped them avoid high-interest credit card debt.
Rich Bayer, UK country manager of Clearpay, said: “Fresh data like this is incredibly valuable for the future of the UK credit market, as it tracks the impact of the latest payment innovations.
“Thanks to BNPL, splitting a purchase over multiple payments no longer has to come with the stress of high-interest rates or the risk of revolving debt. It’s no surprise that it has now become a preferred everyday payment option trusted by consumers from all generations.”
The growth in popularity of BNPL payment methods in the UK comes as the use of more expensive credit options continues to stall.
According to Bank of England data, while the proportion of UK households using BNPL has grown at pace since 2020, both credit card and overdraft usage have seen small declines over the same period.
