Connect with us

Hi, what are you looking for?

Editor’s Pick

Consumers more likely to use Buy Now Pay Later for Christmas as the cost-of-living crisis hits

When comparing to last year’s spending habits, over half of consumers are more likely to or are already using Buy Now Pay Later (BNPL) services, according to new research.

The data reveals that a quarter of consumers, more conscious of their spending habits during the cost of living crisis, are more likely to use BNPL for festive purchases this year, whilst 27% of shoppers are already using the payment option.

The data also reveals that consumers expect to spend, on average, £293 in total for gifts this Christmas. Over a quarter of consumers are more likely to buy a high-value gift, such as jewellery, if BNPL is offered as a payment option this festive season. In fact, shoppers who plan to use BNPL for holiday shopping are most likely to for larger purchases – on average £325.

With the cost of living crisis mounting, the top three items shoppers would use BNPL for during the festive season are: electronics, clothes & shoes, and toys.

The data also shows that while there has been a gender gap with women more likely to use BNPL, this is levelling out as men become more interested in the payment option this festive season. This trend will continue in 2023, as on average, UK consumers plan to use BNPL for 16% of purchases. For men this rises to 19% of purchases, while for women it drops slightly to 14%. Younger age groups remain the demographic with the biggest uptake of BNPL services, with 16-34-year-olds most likely to use BNPL in 2023, for 30% of purchases.

As the BNPL industry grew quickly and at the beginning of the year, 51% of consumers felt providers needed to be regulated. To better protect consumers, regulations have since come into effect and 37% of consumers say they are now more encouraged to use BNPL services. Regulations and financial literacy support remain important elements of responsible BNPL use, as the data shows almost three in five consumers feel that BNPL encourages them to spend more than they can afford, up from 54% at the beginning of 2022.

Paul Marcantonio, Executive Director UK & Western Europe at ECOMMPAY, who analysed the days, says: “Consumers are expected to be more cautious with festive spending this year as the cost-of-living crisis impacts us all. New payment options will be useful for both businesses and consumers, as we navigate the year ahead. The data shows that consumers prefer choice when it comes to making payments, and businesses must take note or risk losing out on key sales this golden quarter.

As part of this, shoppers are exploring alternative payment methods, such as Buy Now Pay Later (BNPL). While it’s encouraging to see more awareness among consumers of the financial solutions available, BNPL comes with the inherent risk that shoppers can run up debt which may put them into difficulty later. Therefore there is a responsibility for providers to ensure they are carrying the right affordability checks before lending.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> The exodus of workers from the jobs market over the pandemic has weakened prospects for Britain’s economic growth, the governor of...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Will Polston, talks to Business Matters about how helping ambitious owners to maximise their potential has resulted in him becoming a finalist...

News

Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...

News

PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...

News

Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Wayne Janse Van Rensburg, Chief Executive of education company Learndirect talks to Business Matters about the inspiration behind their business, which...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.