Twenty-seven percent of U.K. residents have used buy now/pay later lending in the six months between July and December 2022, according to the Financial Conduct Authority, which released this data on Tuesday. That is up from the 17% of U.K. residents who used BNPL in the 12 months before July 2022. The FCA also reports that people who have used BNPL more than ten times in the past 12 months — dating to November 2022 — also have at least one other high-cost credit product. And 51% of consumers who have used BNPL more than 10 times in the past year have added to their overall debt, versus 27% of consumers who have used BNPL fewer than 10 times. The FCA does not have regulatory oversight over BNPL lending, but it has issued guidance for firms to clarify lending terms over the past year. The regulator also said it has used its power under consumer protection laws to secure changes from lenders. “Our research shows a significant increase in the use of BNPL over the past year,” said Sheldon Mills, executive director of consumers and competition at the FCA, in a release. “When used appropriately the product provides valuable benefits, but we want to ensure that consumers, particularly those in vulnerable circumstances, have adequate protections and are given sufficient information.” —John Adams
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