BNPL use has increased by 3,793% in five years

New analysis from debt advice provider PayPlan, has revealed that Buy Now Pay Later (BNPL) usage among its customers across the UK has increased by 3,793% between 2020 and 2025, highlighting the growing role the credit product is playing in household finances.

The findings reveal a significant awareness gap when it comes to the new regulations. Around 85% of consumers interviewed by PayPlan said they were unaware of the upcoming regulatory changes, but 100% supported the introduction of regulation once informed about it.

Further data shows millennials represent the largest share of BNPL users among customers, accounting for 54% of all disclosed BNPL usage, compared with 28% for Generation X and 12% for Generation Z. The data also shows that men account for a slightly higher proportion of BNPL accounts than women, at 51% compared with 41%.

BNPL is a type of short-term credit that allows a consumer to delay payment – usually by splitting a purchase into smaller instalments over a set period. It’s widely offered at online checkouts and often promoted as interest-free, but many consumers don’t realise that BNPL is classed as credit and are not aware of certain consequences such as late payment fees when taking out these agreements.

Alongside the growth in BNPL usage, PayPlan has identified signs that some consumers are becoming increasingly reliant on less regulated or even illegal forms of borrowing. PayPlan data shows 2025 recorded the highest level of loan shark borrowing disclosures on record.

BNPL has become increasingly embedded in everyday spending habits. Nearly two-thirds (62%) of BNPL users surveyed said they had used the products to fund higher-value purchases such as washing machines, laptops and televisions. The average number of BNPL accounts held by users rose from 1.25 in 2020 to 1.91 in 2025. In 2025 66% of consumers had 1 BNPL account, 20% had 2 accounts, 5% had 3 accounts, 3% had 4 accounts and 6 % had 5 accounts or more.

Rachel Duffey, CEO at PayPlan, said “We welcome the regulation of Buy Now Pay Later products and the additional protections it will provide for consumers. However, BNPL has become an important financial tool for many households navigating ongoing cost-of-living pressures. People are increasingly using these products not just for discretionary spending, but to manage larger household purchases and, in some cases, everyday expenses.”

“As the new rules come into force, it is vital that regulators, lenders and the debt advice sector work together to ensure consumers continue to have access to safe, affordable credit. We encourage consumers to familiarise themselves with the upcoming changes and seek free debt advice if they are struggling to manage repayments across multiple credit products.”