More than 1 in 5 UK shoppers using BNPL credit

Research published by buy-now-pay-later (BNPL) provider Butter shows that more than one in five UK customers are using BNPL credit for their Christmas shopping.

Among 5,000 shoppers surveyed by Butter, 22% planned to use BNPL for their Christmas shopping. This repeats similar statistics shown by leading consumer credit rating agency Equifax.

Evidence shows that the offer of such credit has allowed many retailers to benefit from higher sales, even while increasing the debt burden on shoppers themselves.

54% of those who use BNPL say that it helps them spread the cost of their Christmas shopping. Timothy Davis, CEO of Butter said, “The older we get, the more we realise Christmas is about spending time with friends and family but for many, it can still be a very costly time of year.

Overstretching financially can leave us facing a very long January and so it’s hardly surprising that in this day and age, lots of us opt to spread the cost rather than absorb it all during the month of December.”

Equifax showed that 28% of people in the UK used BNPL credit in October, a significant increase on the year before when 23% used credit in December 2020.

“For switched on shoppers that want to smooth out their spending over the festive period, it can be an incredibly useful budgeting tool, and may soon even help those with thin credit files to build up a healthy credit score”, said Jayadeep Nair, chief product and marketing officer at Equifax.

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