Buy Now Pay Later
A helpful way of managing money? Or an easier way to end up with mounting debt? The number of people using buy now pay later firms is shooting up.
More than 17 million UK customers have now used a buy now pay later company to make an online purchase. And experts say the payment method is also set to have its biggest Christmas yet. BNPL firms allow people to manage their shopping, either by postponing their bill for a short while, or splitting it into more manageable chunks over time, interest free. But critics say users too easily end up in debt and tougher rules are needed.
The biggest provider in the UK, Klarna, has seen its customer base double to 15 million since early 2020. The market's other main players, Clearpay and LayBuy, are also expanding fast. Growth is fastest among users in their 40s and 50s, showing BNPL is no longer just a millennial and Gen Z trend.
So is it a helpful way of managing money, or will more people end up with mounting debt? For 5 Minutes On, the Βι¶ΉΤΌΕΔ's Consumer Affairs Correspondent, Colletta Smith, is in the Arndale Centre in Manchester chatting to shoppers and industry experts.
Photo credit: Peter Cade via Getty Images.
