Buy Now, Pay Later (BNPL) payments in the UK are projected to grow by over 20 per cent on an annual basis to reach over $32 billion in 2023 and over $55 billion by 2028, according to new research.

ResearchAndMarkets.com estimates that due to the cost-of-living crisis, over 36 per cent of UK consumers have used BNPL more than once, with millennials and Gen Z consumers using the payment method most frequently.

The market research company found the most popular BNPL spending category was for consumer electronics products such as smartphones, TVs, and computers. This was followed by clothing, home improvement, and health and wellness products.

The research follows separate a separate report from education charity the Centre for Financial Capability (TCFC), which found that BNPL usage is surging across all UK age groups including pensioners.

Jane Goodland, chair of the Centre for Financial Capability, raised concerns that a lack of financial literacy around BNPL could lead to “further indebtedness which can have a snowballing effect over time”.

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