In recent years, there has been a rapid increase globally in the use of Buy Now Pay Later (BNPL) products. In the UK, it’s estimated that 10.1 million people have used BNPL in the past 12 months.
As part of the UK Strategy for Financial Wellbeing, the Money and Pension Service (MaPS) has commissioned the Behavioural Insights Team (BIT) to explore how consumers use and manage their credit – in particular BNPL related products – and how to better support consumers. As part of the strategy, MaPS is working in conjunction with organisations across the UK to see 2 million fewer people often using credit for food and bills.
This report provides an overview of the scale and nature of the BNPL market in the UK. The report also identifies good practice and potential solutions to support BNPL users to better manage their credit.