BNPL usage amongst pensioners 'doubles in 2022'

Buy Now, Pay Later (BNPL) usage is surging across all UK age groups including pensioners, according to new research from education charity the Centre for Financial Capability (TCFC).

BNPL firms such as Klarna allow users to defer payments post-purchase or pay for bigger purchases in instalments.

TCFC’s survey of 2,061 UK adults asked respondents whether they had used BNPL and intended to do so again, or whether they had not used it but intended to do so in the next 12 months.

Almost a fifth of over-65s said they expected to use BNPL services in 2022 – double the amount of respondents in this demographic who reported using the service in 2021.

The survey found over 40 per cent of those in age demographics 18 to 24, 25 to 34, and 35 to 44 had used BNPL services in 2021, with the figures rising for these groups in 2022 and peaking at 54 per cent among 25 to 34s.

“In times of rising costs and inflation these is an increased likelihood of using these schemes that aren’t regulated,” said Jane Goodland, chair of the Centre for Financial Capability. “The responsibility lies with the consumer to assess affordability.”

Goodland said that the organisation is concerned about the lack of financial literacy that can lead to further indebtedness which can have a snowballing effect over time.

Separate research by Forbes recently found that 70 per cent of UK adults were using BNPL as a ‘direct result’ of the cost-of-living crisis.

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