An analysis, based on data from an Opinium survey of 5,528 UK adults, was conducted by the University of Bristol's Personal Finance Research Centre. The findings reveal that, over the past two years, there has been statistically significant growth in the use of Buy-Now-Pay-Later loans, primarily among middle-aged respondents.
Over the past two years:
- 40-49 year olds saw usage increase from 16% to 21%
- 50-59 year olds increased from 12% to 18%
BNPL is still most commonly used by younger adults (accessed by 27% of under 30s and 24% of those aged 30-39). However, uptake in those age groups grew at a lower pace than for older adults (four percentage points and two percentage points respectively). The increases in older groups indicate BNPL loans are becoming more widespread and part of people's everyday budgeting.
The study, for Aberdeen Group Charitable Trust, found around one-in-six (16%) reported having been declined for some form of credit in the past six months. This was unchanged from previous surveys. Most commonly, this was credit cards (7%), personal loans (5%) and overdrafts (4%). Declines were significantly more likely among working age households (19%) than those of pension age (2%), and income of course is clearly a factor, with as many as a third (34%) of working age households in the bottom income quintile reporting being declined for some form of borrowing.
The research also found that three-in-ten UK households (31%) reported putting less money away in savings than they normally would over the past six months in order to make ends meet. Relatively few households said they had accessed pension savings earlier than planned to make ends meet (6%) or cancelled/not renewed an insurance policy in order to save money (8%).
Professor Sharon Collard, Chair in Personal Finance at the University of Bristol, said: "The idea that Buy‑Now‑Pay‑Later loans are mainly used by young people shopping online is increasingly out of date. Our research shows that older adults are turning to BNPL to help manage essential, everyday costs — one participant even used it to pay for new car tyres. This mirrors our wider findings that many households are now putting less aside for unexpected expenses, highlighting just how stretched finances have become. The cost-of-living crisis may no longer be in the media spotlight, but it is far from over for many UK households."
Kristina Church, Chair of the Aberdeen Group Charitable Trust and Group Head of Sustainability at Aberdeen Group plc, said: "As Buy‑Now‑Pay‑Later use grows rapidly among middle‑aged households, with significant increases seen across those aged 40–59, it's clear that it is a tool people are relying on to manage everyday expenses. Yet, many households are struggling to save, let alone benefit from the compound effect of investing, and a notable proportion are being declined other forms of credit. This combination underscores the importance of increasing financial education.
"People need the support and confidence to understand the true cost of these loans, manage repayments effectively, and avoid a cycle of expensive borrowing that can be difficult to break."
