One in eight Brits turned to BNPL for the first time last year despite delay in regulations until 2026

The popularity of buy now, pay later (BNPL) in the UK shows no signs of slowing down, as one in eight Brits (13%) used BNPL services for the first time in 2024 – an estimated 6.8 million people – according to new research from personal finance site Finder.

It continues to attract new users despite the continuing lack of regulations in the sector during this period, with proposed regulatory changes finally announced in October 2024, but only set to come into force in 2026.

Overall, 2 in 5 Brits (42%) admitted having used BNPL services at some point, an estimated 22.6 million people. When those who hadn’t used it were asked about their future plans, only 14% completely ruled out ever using BNPL services, suggesting the service may attract more users once regulations are finally in place.

BNPL usage is high among the younger generations

BNPL usage is particularly common among the younger generations, as 63% of millennials (aged 28-43) and 56% of generation Z (aged 18-27) have used it. Within the past year, 1 in 5 millennials (20%) and 1 in 6 members of generation Z (16%) began using BNPL for the first time.

Louise Bastock, money expert at the personal finance comparison site Finder, said, “Until the new BNPL rules are introduced in 2026, consumers still don’t have access to key protections, such as strict affordability checks and the right to take complaints to the Financial Ombudsman if something goes wrong. What’s more, figures from September 2024 show that the average unsecured debt per UK adult, including BNPL debt, has risen to £4,308, up from £3,891 in September 2022.

“With increased accessibility and minimal fees for late payments, BNPL services do not hold people accountable in the same way as traditional credit products. This can be detrimental to consumers’ future financial health and may lead to them being denied future credit products or reported to a debt collection agency.

“If you do use BNPL, I would encourage people to view these services as a way to add some flexibility to your repayments – not as a way to buy items you can’t afford. If you’re prone to overspending, or struggle with money management, I would consider avoiding BNPL altogether.”