There are various estimates of the size of BNPL usage in the UK, but what all analysts and market commentators agree on is that its use is growing rapidly. FinTech companies led the charge in the UK, picking up Generation Z and Millennial customers born in the 80s and 90s.
Growing up in an online world, these consumers were attracted by the ease of using this payment method, which is based on paying back credit in one or a series of interest free instalments over a fixed time period.
High-street lenders are now joining the market, either by designing their own versions of the ‘standard’ BNPL offer or adapting existing credit products to incorporate particular features.
The range of products available to purchase by means of BNPL is diversifying, with some providers now targeting their offer at those buying essential items, most notably groceries.