The popularity of buy now, pay later (BNPL) is continuing to grow, particularly amongst young adults in the UK, with half of Generation Z now using this payment option whenever it’s available, according to TransUnion. The latest research from the global information and insights company – one of the UK’s leading credit reference agencies – examines changing consumer habits and shows that six in 10 (64%) people aged 18 to 24 are using buy now, pay later services.
Alongside increased demand for buy now, pay later, the research shows a strong appetite for credit from this generation, with 42% saying they plan to apply for new credit or refinance existing credit in the coming year – well above the 27% average for UK consumers. Kelli Fielding, TransUnion’s managing director of consumer interactive explains: “It’s likely that young adults will turn to credit to help them take the steps in life that have been put on hold over the past couple of years – whether for major purchases, like buying a car, or moving out of the family home – as well as for everyday finance.
“Alongside this, it’s clear to see the growing demand for buy now, pay later services, with Gen Z citing the main appeal being interest-free payments (70%), as well as spreading the cost over time (62%) and ease of use at checkout (54%) which is markedly more important for this age group than others.”
