
Buy Now, Pay Later Regulation Will Build Confidence Amongst Consumers
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The majority (71%) of UK adults agree that BNPL should be subject to financial regulation, however more than half (57%) are unaware regulation is underway¹
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It is expected that regulation for BNPL products will come into force from early 2026
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Nearly half (44%) of Brits prioritise financial products that charge no interest
DISTRIBUTED-WORK-MODEL/LONDON, March 19, 2025 – Nearly half of UK adults (48%) are more likely to use Buy Now, Pay Later (BNPL) products once regulation is passed, with more than seven in 10 (71%) believing it is important that BNPL is subject to UK financial legislation.
A new study of 3,000 UK adults by Clearpay, a leader in Buy Now, Pay Later (BNPL), found people intend to spread the cost of bigger purchases with furniture (39%), technology (39%), white goods (34%), and holidays, flights or experiences (26%) being the top items people plan to pay for using BNPL.
The research highlighted that more than half (53%) of people have used BNPL for a purchase in the past and parents with children under the age of 18 have been big adopters of BNPL to date (70%). One in seven (15%) parents are planning to use BNPL in the future to buy sports equipment and a further 10% plan to pay for musical instruments, suggesting they will use it to invest in their children’s extracurricular activities.
A changing financial landscape
Credit cards have long dominated consumer spend, with 55% of respondents having a card in use, despite 13% paying interest on the product each month. In fact, one in five (20%) are actively trying to reduce their credit card usage.
The research found there is still confusion about financial products. Two thirds (66%) of people do not understand what a credit card APR is and 57% are unaware that BNPL regulation is underway. However, Brits are clear on their priorities for financial products, with 44% wanting a product that charges no interest at all. A further 29% prioritise a payment option which allows them to budget more easily.
Money expert, Ellie Austin-Williams commented: “A wider range of financial products benefits consumers by giving them the flexibility to choose options that suit their needs. It’s essential for people to understand their payment choices and select a product that aligns with their financial priorities, whether that means opting for an interest-free option or the ability to spread payments. The upcoming regulation of BNPL is a welcome change, offering consumers greater confidence in using the payment method that works best for them.”
Ellie provides her five top tips to managing your spending:
- Understand your budget – know how much money comes into your bank account each month and what your expenses are. A clear budget gives you the information you need to make informed financial decisions.
- Plan ahead – it’s easy to click *add to basket* and end up spending far more than you planned, so write a list ahead of time and leave any items you plan to purchase in your basket for 24 hours before revisiting to check out.
- Shop around – always check competitor retailer prices before you shop. Use price tracker websites to monitor price trends and find the best deal.
- Save when you spend – take advantage of student or industry discounts, store loyalty programs and use online browser extensions to get the best price possible.
- Ensure products work for you – check what interest rates and charges you pay on your credit products and explore whether there are cheaper ways to pay. Comparison sites can help find financial products to suit your needs.
Rich Bayer, UK Country Manager at Clearpay, commented: “With 94% of our transactions incurring no late fees, we know that our customers use Clearpay to help manage their spending. If a customer does miss a payment though, we freeze their account to ensure they can get back on track and keep on top of what they need to pay.
“It’s clear from our research that BNPL regulation is important to UK consumers. At Clearpay, we have always called for regulation that prioritises customer protection, delivers much-needed innovation in consumer credit and sets high industry standards across the sector.”
Find out more here.
ENDS
Additional data points:
- 50% of respondents say knowing BNPL is regulated would boost their confidence
- 49% of respondents believe BNPL regulation will encourage more UK retail spending and support economic growth
- 60% of respondents believe BNPL regulation will improve consumer protection
- 53% of people have used BNPL services to spread costs
- 55% of respondents say it helps them manage expenses, and 39% use it for budgeting
- 43% of respondents consider payment schedules when selecting a financial product, and 36% factor in upfront costs
- 57% of respondents agree that BNPL providers should be legally required to assess financial suitability before approving transactions
About the research
- Clearpay commissioned Censuswide to conduct a survey of 3000 UK adults between 7th February – 13th February 2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
About Clearpay
Clearpay is transforming the way we pay by allowing anyone to buy products immediately and pay over time – enabling simple, transparent, and responsible spending. We are on a mission to power an economy in which everyone wins.
Clearpay is known as Afterpay outside the UK and is available in Australia, Canada, New Zealand, and the United States. It is offered by thousands of the world’s favourite retailers and used by millions of active global customers. Clearpay is a wholly owned subsidiary of Block, Inc. (NYSE: XYZ).
Five facts about Clearpay:
- The service is completely free for customers who pay on time
- If a customer misses a payment, their account is paused so that they cannot accrue more debt or fall into revolving debt
- Capped late fees apply for late payment instalments
- Globally, 90% of Clearpay transactions are paid for with a debit card
- Globally, 96% of instalments were paid on time 2024
Press Contacts
Parmjit Dhillon
Kate Mallett