Stay ahead of the curve and future-proof your business with Mintel’s UK Buy Now, Pay Later Financing Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest buy now pay later market research, trends and consumer behaviours affecting your business. Get a 360° view of the buy now pay later market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
Topics Analysed in this Report
- Overview of buy now pay later market players, competitive strategies and advertising initiatives.
- Use of consumer credit and BNPL.
- Perceptions of BNPL and credit cards and the perceived benefits of BNPL.
- Impact of the cost of living crisis on BNPL use.
Buy Now Pay Later Market: Overview
Amid the cost of living crisis, BNPL is increasingly appealing to consumers. Due to its flexibility and cost-effectiveness, BNPL can be a helpful solution for those looking to manage cash flow. The higher rates for traditional credit cards have also boosted the popularity of BNPL financing and encouraged more people to turn to interest-free options.
- Buy now pay later market size: Mintel forecasts that unsecured credit lending is set to rise 10% in 2023.
Buy Now Pay Later Market: Challenges and Opportunities
BNPL struggle with negative perceptions
A lack of legislation and negative press have fuelled concerns about irresponsible borrowing in BNPL financing leading to debt. As a result, the buy now pay later market has been facing reputational challenges, with relatively low levels of trust among the general public.
- Buy now pay later challenge: 82% of adults are concerned that BNPL can encourage people to spend beyond their means
High street banks expand BNPL options
Many banks are already offering instalment plans, giving consumers more flexibility through their versions of alternative payments to compete in the BNPL space. While similar to BNPL schemes, the Banks’ BNPL products are regulated, with hard checks carried out and purchases protected by Section 75 of the Consumer Credit Act.
- Buy now pay later market growth: 17% of UK adults have used a BNPL credit option in the last two years.
Purchase our UK Buy Now Pay Later Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities. Readers of this report may also be interested in UK Consumer Attitudes Towards Debt and Credit Market Report 2023.
Leading Brands in the Buy Now Pay Later Market
Klarna, Ziltch, Clearpay, Laybuy, Paypal, Monzo Flex.
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Expert Insights from a Retail Analyst
This report, written by Stefania Apostol, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the buy now pay later market and add expert context to the numbers.
The buy now pay later market is a strong challenger to traditional credit products, and the cost-of-living crisis has made this option more appealing.
Stefania Apostol
Innovation Analyst
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- Key issues covered in this Report
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Executive Summary
- Opportunities for the BNPL market
- Market dynamics
- Graph 1: gross consumer credit lending (excluding student loans), 2019-23
- What consumers want and why
- Graph 2: outstanding buy now, pay later purchases, 2023
- Graph 3: total outstanding balance on buy now, pay later, 2023
- Innovation and marketing
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Market Dynamics
- Payment landscape
- Graph 4: payment volumes, by payment type, 2015-22
- Graph 5: monthly value of card transactions in the UK, 2021-23
- Graph 6: monthly volume of card transactions in the UK, 2021-23
- Graph 7: payment method frequency, 2023
- Credit landscape
- Graph 8: gross consumer credit lending (excluding student loans), 2019-23
- Graph 9: monthly changes of net consumer credit lending (not seasonally adjusted), 2018-23
- Graph 10: Bank of England base rate (end of month), 2017-23
- Graph 11: Bank of England quoted interest rates for personal loans, credit cards and overdrafts, 2017-23
- Online retailing
- Graph 12: internet sales as a percentage of total retail sales, 2017-23
- Graph 13: use and types of credit used to purchase products online, 2022-23
- Macro-economic factors
- Graph 14: CPI and CPIH, 12-month rates, 2016-23
- Graph 15: issues faced in the last two months, 2023
- Graph 16: household financial wellbeing index, 2016-23
- Regulatory and legislative changes
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What Consumers Want and Why
- Use of consumer credit
- Graph 17: types of credit/borrowing used in the last two years, 2023
- Graph 18: use of credit cards and BNPL in the last two years, by financial situation, 2023
- Graph 19: use of selected credit products, by repertoire analysis of use of credit products, 2023
- Use of buy now, pay later financing
- Graph 20: total outstanding balance on buy now, pay later, 2023
- Graph 21: outstanding buy now, pay later purchases, 2023
- Graph 22: buy now, pay later repayments, 2023
- Benefits of buy now pay later financing
- Graph 23: perceived benefits of buy now, pay later, 2023
- Graph 24: perceived benefits of buy now, pay later, by age groups, 2023
- Behaviours towards buy now pay later financing
- Graph 25: attitudes towards BNPL, 2023
- Graph 26: agreement with the statement ‘I think BNPL will eventually replace credit cards’, by age groups, 2023
- Perceptions of credit products
- Graph 27: credit products described as ‘trustworthy’ and ‘secure’, 2023
- Graph 28: BNPL described as ‘secure’ and ‘trustworthy’, by age groups, 2023
- Graph 29: perceptions of BNPL, by selected types of credit/borrowing used in the last two years, 2023
- Graph 30: perceptions of credit cards, by selected types of credit/borrowing used in the last two years, 2023
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Innovation And Marketing Trends
- Key players overview
- Competitive strategies and launch activity
- Advertising and marketing activity
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Brand Research
- Graph 31: key brand metrics for selected BNPL brands, 2023
- Graph 32: attitudes towards and usage of selected BNPL brands, 2023
- Graph 33: attitudes towards selected BNPL brands, 2023
- Graph 34: brand personality – micro image, 2023
- Graph 35: trust in selected BNPL brands, 2023
- Graph 36: brand personality – macro image, 2023
- Graph 37: brand recommendation, 2023
- Graph 38: Zilch – usage and awareness, 2023
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Appendix
- Report scope and definitions
- Methodology
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