Published by: The Centre for Social Justice
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Key Take Aways
The market for Buy Now Pay Later (BNPL) has grown rapidly, with approximately 3 million UK households (11-12%) now owing money on Deferred Payment Credit (DPC) agreements, totalling an estimated £2.6 billion.
The average borrowing per household on BNPL has increased from £761 in 2023 to £874 in 2024, suggesting growing consumer engagement.
Most BNPL consumers borrow small amounts, with 66% borrowing £350 or less in 2023, though this share decreased to 57% in 2024.
BNPL usage is more prevalent among younger consumers, especially those aged 25-34, and is disproportionately high amongst households with dependent children.
A significant share of users and potential users show signs of financial distress or heightened vulnerability, particularly among low-income and subprime segments.
Regulatory exemption has enabled BNPL to grow outside traditional consumer credit regulation; upcoming legi...
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