A new analysis by Experian shows that Buy Now, Pay Later (BNPL) services are becoming more popular across the UK. Many consumers are using BNPL responsibly to manage their monthly expenses and improve their financial flexibility.
New FCA Rules to Protect Consumers
From July 15, the UK’s Financial Conduct Authority (FCA) will begin regulating the BNPL sector for the first time. The new rules will introduce stronger consumer protections, including clearer information about BNPL products, affordability checks before approval, and better support for customers who face repayment difficulties.
BNPL Usage Reaches Record Levels
Experian’s analysis found that more than 100 million BNPL transactions were made by around 8.5 million customers during 2025. The total value of these transactions was more than £7 billion.
The report also showed that 98.5% of BNPL balances were repaid on time, indicating that most consumers are using the payment option responsibly.
More Consumers Are Choosing BNPL
The popularity of BNPL continues to increase. In March 2026 alone, more than 9 million transactions were recorded among nearly 4 million consumers, with a total spending of £621 million.
The average transaction value remained around £60, suggesting that most people use BNPL for everyday purchases rather than expensive items.
Older Consumers Are Also Using BNPL
Although people aged 25 to 34 remain the largest group of BNPL users, adoption is increasing across all age groups.
Experian found that the number of users aged 65 to 74 grew by 46% compared to the previous year. Among people aged 75 and above, BNPL usage increased by 53% during the same period.
Buy Now, Pay Later India Data
India’s Buy Now, Pay Later (BNPL) market value is estimated at roughly $30 billion in 2026. This boom is largely due to 95% of the population lacking traditional credit cards. It allows shoppers to buy items and pay in small parts over time.
India’s Buy Now, Pay Later (BNPL) market reached roughly $21.95 billion (about ₹1.97 lakh crore) in 2025. Experts project the industry will reach $35.07 billion by 2030.
