2,000 BNPL users across the UK have been polled
Half of British Zoomers regret using unregulated BNPL products: reason unveiled. Source: pexels.com
According to the research, almost 4 in 10 younger shoppers spent more than they anticipated in the Christmas and January sales using unregulated BNPL loans, compared to 1 in 3 on a national scale.
As a result, this spending has left Gen Z BNPL users with an average of ￡175.50 in monthly repayments, which they’re using 20% their monthly discretionary income to pay off.
And while 44% are left feeling overwhelmed by their repayments, 29% doubt their ability to pay back what they have borrowed. Almost 1 in 12 have already been contacted by debt collectors, 12% have seen their credit score impacted, and half regret using unregulated BNPL altogether, because they ended up buying more than they could afford to repay.
The products most commonly bought by Gen Z-ers using BNPL are ‘everyday fashion’ items (35%) and beauty products (26%).
Barclays’ research shows that close to 7 in 10 18-24-year-old users of unregulated BNPL products have racked up debts across multiple providers simultaneously. Interestingly, 59% of those having had agreements in place with three or more providers at the same time.
SEE ALSO:
Pay Space
Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.
