UK, 17 February 2023: According to new insight1 from Experian, searches for Buy Now Pay Later (BNPL) products were up 33% in October-December last year, compared to the same period in 2021.
The analysis found that November and December saw a 73% in demand compared to the preceding six months, as consumers looked to spread costs during peak Christmas shopping season.
In December alone, £404m was spent, with the bulk of customers making only a single transaction, averaging between £60-£70. But over 250,000 customers made 5 or more transactions.
Overall, usage of BNPL grew across all income and age deciles for the quarter. However, growth was most pronounced in older, more affluent, and lower risk customers. This contrasts pre-existing perceptions that these products are mainly used by the younger generation.
Experian is working with BNPL companies to bring their customers’ BNPL agreements onto credit reports, with accounts from several large providers now live on its credit bureau.
The company is also providing several BNPL providers with tools to help them make affordability checks, so they can understand their customers’ financial circumstances.
Paul Speirs, Managing Director of Digital Consumer Information at Experian, said “The BNPL sector has grown rapidly in recent years, and, although it’s generally thought that the younger generation are the driving force behind this, our latest analysis shows demand coming from a much wider range of consumers and income bands.
“Now that BNPL payment information is available to all lenders, they can make better decisions based on a more complete view of their customer’s credit risk and affordability. The benefits of sharing of BNPL data also extends to helping validate the identity of a consumer. This new source of information can be added to help protect lenders and consumers from the dangers of fraud.”
-ENDS-
Notes to Editor:
[1] Experian analysed 6 million transactions from consumer’s BNPL accounts from November and December 2022 being shared by providers with Experian’s UK credit bureau.
Media contact:
Joe Green
Senior PR Manager, Corporate & Business, at Experian UK&I
Tel: 07812 737 768 / Email : joseph.green@experian.com
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