One in four use BNPL when buying online

New research from TransUnion has found that nearly four in 10 (38%)  adults are using buy now, pay later i(BNPL) when shopping online, which is consistent with the previous year.

More than half (53%) of those that used buy now, pay later in the past 12 months spent a total of between £100 and £499 over the year. Clothes accounted for 53% of all buy now, pay later spend, followed by consumer tech (33%) and furniture and furnishing (27%).

Andy Piggott, Director of Core Credit at TransUnion in the UK, said “This steady picture shows how established buy now, pay later has become as part of the consumer wallet when it comes to methods of payment. The key drivers are cited as the ability to spread the cost over a period of time and the appeal of interest-free payments. This mirrors what we saw in our previous research and points to the important role that these providers are playing in giving consumers an even greater range of choice in their financial decisions.”

“Having started to introduce this data into consumer credit reports last year, we’re pleased to note consumer habits have not been impacted, as this is really beneficial for both lenders and consumers in helping to create an even more holistic view of an individual’s financial circumstances.”

Praneeth Meka, TransUnion’s Director of Data and Analytics said “TransUnion has a proven track record of delivering innovative solutions, so we’re proud to have been at the forefront of changes within buy now, pay later credit reporting. By conducting extensive industry analysis and working with leading buy now, pay later providers, we were able to identify the most appropriate way to incorporate the data, putting the consumer at the heart of these new developments, and this latest study attests to the success of our approach.”