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Buy Now Pay Later (BNPL), or Deferred Payment Credit, is a flexible payment option that allows consumers to split purchases into interest-free instalments, initially online but now increasingly in physical stores, serving as a budgeting tool for some.
Launched in the UK in 2014, BNPL has become a major growth area, growing from negligible presence a decade ago to encompassing 8% of all online and physical Point of Sale (POS) payments. This market share is forecasted to grow slightly to 9% by 2030.
Despite a challenging economic climate, usage saw a significant increase in 2024, with 25% of UK adults using BNPL at least once, compared to 14% in 2023. While the user base expanded, the share of frequent (monthly or more often) users remained at 33%, suggesting many new adopters are sporadic rather than regular users. In contrast to frequency, the average spend grew significantly (4%), well above the 2.5% inflation rate, bringing the average BNPL purchase in the UK to £114.
Find out more below
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