The popularity of buy now, pay later (BNPL) schemes is no longer limited to younger shoppers, with new figures showing a sharp rise in use among older Britons. According to data from UK Finance, almost a third of British adults were living largely cashless lives in 2024, signalling a wider shift in payment habits across all age groups.
Older generations embrace digital credit
Once seen as a tool predominantly used by millennials and Generation Z, BNPL is increasingly being adopted by those over 50. Analysts point to rising living costs, convenience, and the appeal of spreading payments without traditional credit card debt as key drivers. Retailers have reported that older customers are using BNPL for both essential purchases and discretionary spending, reflecting a broader acceptance of digital finance tools.
A cashless society accelerates
The shift comes amid a wider trend towards a cashless economy. UK Finance’s report shows that nearly one in three adults conducted most of their financial lives without cash in 2024. Contactless payments, mobile wallets, and online shopping platforms have helped accelerate this transition, with the pandemic’s legacy continuing to reshape consumer behaviour.
Financial risks and regulatory concerns
Despite its popularity, BNPL remains under scrutiny from regulators. Consumer advocates warn that older borrowers may be particularly vulnerable, with some at risk of accumulating debt without fully understanding repayment terms. The Financial Conduct Authority (FCA) has called for clearer disclosures and stronger safeguards, especially as BNPL expands into sectors such as healthcare, utilities, and travel.
Implications for the financial sector
Banks and credit card providers are closely monitoring BNPL’s rapid growth. Some have launched their own instalment products in response, while others have raised concerns about transparency and repayment risk. Economists argue that while BNPL can provide flexibility, unchecked expansion could pose challenges for household debt levels and financial stability.
Looking forward
With BNPL now embedded in the shopping habits of older as well as younger generations, pressure is mounting on policymakers to balance consumer choice with financial protection. As Britain moves deeper into a cashless era, the way its citizens borrow and spend is undergoing one of the most profound transformations in decades.
Newshub Editorial in Europe – 2025-10-01
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