78% Report Lowered Stress with Large Purchases and Festive Spending
- 30% of British adults used Buy Now Pay Later (BNPL) services last year
- Most popular among Millennials and Gen X
- 78% said BNPL reduced stress related to large purchases
- 65% found it helpful for festive spending
- 45% found BNPL less stressful than credit cards
- 78% found BNPL cheaper than other credit options
- 77% avoided high-interest debt with BNPL
- UK credit card and overdraft usage declines
- Clearpay UK country manager: ‘BNPL is a preferred payment option trusted by consumers from all generations’
A recent study by Clearpay reveals that 30% of British adults utilized Buy Now Pay Later (BNPL) services for at least one payment in the past year. The research, conducted alongside Oxford Economics, shows BNPL’s popularity among Millennials and Gen X at 41% and 36% respectively. The ‘Economic Impact of Clearpay in the UK’ report highlights how BNPL helps alleviate financial stress as a key factor for usage. Nearly four in five (78%) respondents reported reduced stress from large purchases, while two-thirds (65%) cited relief from festive spending pressure. Respondents also noted that BNPL eased financial concerns compared to credit card borrowing, with 45% preferring it over cards and only 10% opting for credit cards as less stressful. Nearly four in five (78%) found BNPL cheaper than other credit options, while 77% avoided high-interest debt. Clearpay UK country manager Rich Bayer commented: ‘Fresh data like this is valuable for the future of the UK credit market, as it tracks the impact of payment innovations.’ As BNPL’s popularity grows in the UK, credit card and overdraft usage declines according to Bank of England data since 2020.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the popularity of Buy Now Pay Later services in the UK based on research by Clearpay and Oxford Economics. It includes statistics and quotes from a representative of Clearpay to support its claims. The article also compares BNPL with credit card usage according to Bank of England data, making it informative and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about the popularity and benefits of Buy Now Pay Later services in the UK based on a recent study by Clearpay. It also compares BNPL to credit card usage. However, it lacks in-depth analysis or exploration of potential risks or drawbacks associated with these payment methods.
Financial Relevance: Yes
Financial Markets Impacted: UK credit market, Buy Now Pay Later (BNPL) companies
Financial Rating Justification: The article discusses the popularity and impact of BNPL services on consumer behavior and their preference over traditional credit options like credit cards and overdrafts, which affects the UK credit market and related companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
www.retailsector.co.uk