Conducted by RFI Global, the study shows that only 52% of BNPL users are aware of late payment fees, and just as many have a rough understanding of their costs. Alarmingly, 15% of users have already incurred late fees, a figure that rises to 22% among those with poor credit scores.
BNPL usage spiked during the festive season, including Christmas, Black Friday, and Cyber Monday, increasing the risk of repayment difficulties in January. Moreover, 60% of users are unaware that BNPL products are unregulated, highlighting a critical gap in consumer protection. With UK Government regulations for BNPL not expected until 2026, the urgency for interim measures grows.
34% of consumers with poor credit scores use BNPL, and 42% of this group combine BNPL with credit cards. In contrast, only 12% of consumers overall use BNPL, and 33% combine it with credit cards.
35% of BNPL users admit to making impulse purchases they later regret, compared to just 17% of non-BNPL users.
Among monthly BNPL users, 65% anticipate needing more credit in the coming year to cope with rising living costs, compared to 28% of non-credit users.
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