Buy now, pay later (BNPL) statistics

Here's what you need to know about the rise of buy now, pay later services in the UK.

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By

Liz Edwards

&

Sophie Barber

Edited by

Holly Jennings

Updated

Fact checked

Buy now, pay later (BNPL) usage is growing fast in the UK so we carried out some research to see if buy now, pay later providers are disrupting the credit card industry and how we pay for products. Here are the latest BNPL statistics.

BNPL statistics: Highlights

  • As of 2024, half of UK adults (50%) have used BNPL services at some point, approximately 26.4 million people. This is up from 36% at the start of 2023.
  • 38% of Brits used BNPL services in the year to January 2024, and 14% used it for the first time in this period.
  • In 2022, around 360 million people globally used BNPL services.
  • Over half of people who used BNPL in 2023 paid a late fee (53%), an estimated 10.6 million people.
  • The UK BNPL market is forecast to grow from £22.6 billion ($28.7 billion) in 2022 to £44.8 billion ($56.8 billion) by 2028.
  • 38% of Brits have not used BNPL and do not intend to use it in the future.

How many people use buy now, pay later in the UK?

According to our 2024 survey, around half of UK adults (50%) have used BNPL at some point, which equates to around 26.4 million people. This number is up from an estimated 19.1 million (36%) at the start of 2023.

38% of Brits had used BNPL in the 12 months leading to January 2024, and 14% of Brits had used BNPL services for the first time in this period.

Interestingly, the research also found that 38% of Brits have not used BNPL and do not intend to use it in the future.

Have you used BNPL? Percentage
I have used BNPL 49.70%
I have not used BNPL and do not intend to use it 38.19%
I have not used BNPL but I intend to use it 1.79%
I have not used BNPL and am unsure about future use 10.32%

Our research shows that BNPL is most popular with millennials and generation Z. Almost 7 in 10 people from these groups have used buy now, pay later services at some point, 69% for millennials (aged 24-42) and 68% of generation Z (aged 18-23).

It is also popular with generation X (aged 43-54), as more than half of this group (52%) has used it before. BNPL is less popular among the older generations, with 3 in 10 baby boomers (31%) and less than 1 in 10 from the silent generation (9%) admitting to using it.

Generation Percentage using BNPL
Generation Z 68%
Millenials 69%
Generation X 52%
Baby boomers 31%
Silent generation 9%

Adoption of BNPL among different age groups

The highest percentage of new BNPL users can be seen among 25- to 34-year-olds, as almost a quarter (23%) of this age group have used this service in the 12 months to January 2024. Interestingly, around 1 in 5 of those in the youngest age group, aged 18-24, had used BNPL services at an earlier point but not in the past year. This is the only age group with fewer new users than past users.

Age group Existing BNPL users New BNPL users Past BNPL users
18-24 32.08% 17.45% 19.34%
25-34 34.62% 23.08% 13.91%
35-44 33.23% 19.34% 12.99%
45-54 21.99% 17.89% 9.68%
55+ 12.50% 6.38% 9.57%

How many BNPL users pay late fees?

Many BNPL providers have introduced late repayment fees, including Klarna, which began charging them in March 2023.

Our survey found that in the last 12 months, more than half (53%) of those who had used BNPL had been charged fees, with average fees per person adding up to £23.50.

This means an estimated 10.6 million Brits could have paid late fees in the last 12 months, shelling out an eye-watering total of almost £250 million.

The use of buy now, pay later is highest in London, where 58% of residents have used it at some point, and lowest in the North East, where 44% of residents have used it at some point. Aside from this, there is not too much regional variation when it comes to BNPL usage.

Region Percentage using BNPL
Greater London 58.7%
Northern Ireland 55.6%
West Midlands 54.8%
South West 53.4%
Scotland 48.3%
North West 48.0%
Wales 47.9%
East of England 47.5%
East Midlands 45.9%
Yorkshire and the Humber 45.4%
South East 45.0%
North East 43.8%

Buy now, pay later market size in the UK

The UK buy now, pay later market is forecast to grow from £22.6 billion ($28.7 billion) in 2022 to £44.8 billion ($56.8 billion) by 2028, with an annual growth rate of 10.9%.

Why do shoppers use buy now, pay later services?

We also analysed the main reasons shoppers are using buy now, pay later services. Our data from a previous survey in 2020 shows that the main reason that people are using BNPL is because of its ease and convenience (44%). The ability to spread costs over time is the next most popular reason (41%), followed by interest-free payments (39%) and the ability to pay for purchases that individuals couldn’t afford otherwise (30%).

Why do shoppers use BNPL services Percentage
They're easy and convenient 44%
I can spread costs over a longer period of time 31%
To access interest-free payments 39%
To pay for purchases I couldn't otherwise afford 30%
To try on items that are delivered to me before I am charged for them 28%
I don’t want to use or take out a credit card right now 27%

Sources and methodology

  • Finder commissioned Censuswide in January 2024 to carry out a nationally representative survey of adults aged 18+. A total of 2,006 people were questioned throughout Great Britain, with representative quotas for gender, age and region.
  • Markets and Research
  • The reasons for using BNPL are from a previous survey commissioned by OnePoll in July 2020. A total of 2,000 people were questioned throughout the UK, with representative quotas for gender, age and region.

For all media enquiries, please contact

Matt Mckenna
UK communications manager
T: +44 20 8191 8806
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

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