BNPL Payments Rise Over 10% As UK Buyers Face Rising Costs – Adobe

Adobe Analytics has found that the number of people in the UK who use Buy Now Pay Later (BNPL) has gone up 10.7% since January 2022.

Adobe Analytics found that 12% of online purchases in January of this year were made with BNPL. This shows that shoppers are becoming more price-conscious in the wake of the cost of living crisis. The average value of a BNPL order has also gone up because shoppers are choosing to pay for more expensive items over a longer period of time.

In January 2023, people in the UK spent £8 billion. This was 1.4% less than in January 2022 and 26.7% less than in December 2022.

Suzanne Steele, who is the vice president and managing director of Adobe in the UK, said:

“Taking into account the increased pressure on consumer spending power this year compared with 2022, a year-on-year drop of just 1.4% in January online spending shows that the post-Christmas sales period still holds great importance for retailers and shoppers alike. While last week’s suggestion by the Bank of England that inflation may have peaked is good news in the mid- to long-term, the increased use of BNPL services to spread the cost of January purchases, shows that consumers are still keeping a close eye on their finances in the short term.”

The data shows that mobile shopping has become more popular over the years. This January, 59.7% of shopping was done on phones, and people spent £4.7 billion on their phones. Click-and-collect is also becoming more popular. In previous years, the average number of click-and-collect purchases per month was 6%, but in January of this year, it was 8.2%. This suggests that people want to save money on shipping fees.