Share of UK Senior Citizens Using BNPL Doubled in 2022

The share of senior citizens in the United Kingdom who use BNPL doubled in 2022.

About 20% of people over the age of 65 have now used buy now, pay later (BNPL), with nearly half saying they were doing so in order to spread out payments because of the rising cost of living, Bloomberg reported Monday (Jan. 16), citing statistics from the Centre for Financial Capability.

“In times of rising costs and inflation there is an increased likelihood of using these schemes that aren’t regulated,” Centre for Financial Capability Chair Jane Goodland said in the report. “The responsibility lies with the consumer to assess affordability. Our concern is the lack of financial literacy that can lead to further indebtedness which can of course have a snowballing effect over time.”

The rate of adoption of BNPL by U.K. seniors outpaced that of younger people from 2021 to 2022, according to the report.

However, BNPL is more commonly used by members of Gen Z and millennials. About 50% of those between the ages of 18 and 34 in the U.K. have used the product, up from 44% in 2021, the report said.

Overall, 36% of U.K. adults have used BNPL, up from 29% in 2021, per the report.

The Centre for Financial Capability did not immediately reply to PYMNTS’ request for comment.

An earlier report by researchers at the University of Edinburgh found that 60% of public sector workers in the U.K. had used BNPL loans at least once to make ends meet.

About 10% who were initially rejected for a more conventional loan went on to secure credit from BNPL firms.

This news came as public sector workers were feeling the pinch as inflation was outpacing pay raises to the point that these workers were seeing a real-terms cut in wages.

As PYMNTS reported in December, U.K. consumers have been making changes to their lifestyles in the face of steep increases in the cost of living.

For example, ClearScore found in a survey that 63% of Brits have cut back on nonessential spending and 55% have cut back or delayed big purchases.

The firm also said in December that overdraft usage in the U.K. had increased 7.1% since August 2021.