The data, commissioned by Barclays, found that 36% of BNPL customers do not fully understand the consequences of missing repayments, while 52% are unaware that unregulated BNPL providers do not have to carry out robust affordability checks.More than a quarter (27%) of UK adults have used BNPL so far, according to the study, and almost half of these admitted to doing their Christmas shopping using this payment method to purchase gifts for family and friends this year.
However, concerns have been mounting that consumers will be encouraged to spend beyond their means as shopping debts continue to rise across the UK. Barclays revealed on Friday that 36% of Brits admit to using BNPL to spend more than they can afford, and 35% expect to use it more often as the cost of living increases.
A quarter of 2,000 respondents reported struggling to keep track of their spending, having taken out loans with several BNPL providers, while around one in four said this has caused them to miss a repayment.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now