More people using buy now, pay later services

Buy now, pay later services are becoming more and more popular among Brits.

Figures from UK Finance show that 14% of British adults used buy now, pay later in 2023.

But last year, that went up to 25% - one in four.

What is buy now, pay later?

Buy now, pay later lets you delay paying for your online shopping in two ways. 

You can either:

• put off paying for a purchase for 14-30 days
• ‘slice’ the cost of a purchase into smaller amounts to pay off over a number of months

More older people using buy now, pay later

Younger adults are currently the most frequent users of buy now, pay later.

But a growing number of older people are also turning to this payment method.

In fact, UK Finance data shows that uptake among 55 to 64-year-olds rose from 10% in 2023 to 21% in 2024.

Shoppers using buy now, pay later for fashion purchases

Fashion accounted for nearly half (46%) of buy now, pay later transactions in 2024, with people spending an average of £114.

This backs up recent research from the Financial Conduct Authority (FCA), which found that most common uses for it were:

• lifestyle and beauty purchases - 41%
• treating myself or other people - 37%

But 8% said they’d used it to cover everyday essential expenses.

And FCA figures also show that 30% of those who’ve used buy now, pay later in the last year are adults with low resilience.

That’s why new buy now, pay later affordability checks are set to be introduced next year.

What will the new affordability checks involve?

From July 2026, lenders will have to check that people can afford to repay loans and give them support if they get into financial problems.

Borrowers will also have the right to complain to the financial ombudsman if something goes wrong.

The FCA hopes this will stop people from taking on more debt than they can afford.