
According to research by personal finance site Finder, three in 10 (31%) Brits used BNPL services last year, with one in eight (13%) doing so for the first time.
The study found that BNPL is particularly popular with younger people. One in five (20%) millennials and one in six (16%) members of generation Z used it for the first time last year.
BNPL services, such as those offered by Klarna and ClearPay, continue to attract new users despite the continuing lack of regulations in the sector. Proposed regulatory changes announced in October 2024 are set to come into force in 2026.
Plans to bring the sector under regulation were first tabled by the Conservatives in 2021, with regulation intended to start at the end of 2023. But the plans were repeatedly pushed back following lobbying from the BNPL sector.
Final legislation is expected to be laid out in Parliament in early 2025. Once the legislation is laid out, the Financial Conduct Authority (FCA) will finalise the rules so they can take effect in 2026.

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Overall, two in five (42%) Brits admitted to having used BNPL services at some point, which equates to an estimated 22.6 million people.
Louise Bastock, money expert at Finder, said: “Until the new BNPL rules are introduced in 2026, consumers still don’t have access to key protections, such as strict affordability checks and the right to take complaints to the Financial Ombudsman if something goes wrong. What’s more, figures from September 2024 show that the average unsecured debt per UK adult, including BNPL debt, has risen to £4,308, up from £3,891 in September 2022.
“With increased accessibility and minimal fees for late payments, BNPL services do not hold people accountable in the same way as traditional credit products. This can be detrimental to consumers’ future financial health and may lead to them being denied future credit products or reported to a debt collection agency.
“If you do use BNPL, I would encourage people to view these services as a way to add some flexibility to your repayments – not as a way to buy items you can’t afford. If you’re prone to overspending, or struggle with money management, I would consider avoiding BNPL altogether.”