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More than 8 million people in the UK are now using Buy Now, Pay Later (BNPL) for purchases under £50 – and, for many, it’s becoming more than just a convenient way to pay.

With the cost of living still high and many households under financial pressure, BNPL is often seen as quick fix. But what starts as a short-term solution can sometimes lead to longer-term stain on your budget.

What we’re seeing at PayPlan

Since 2022, we’ve seen a steady rise in the number of people coming to us for help BNPL debts of £50 or less. Although these amounts may seem small, multiple repayments across different providers can quickly become difficult to manage.[1]

What is Buy Now, Pay Later (BNPL)?

BNPL is a type of short-term credit that allows you to delay payment – usually by splitting a purchase into smaller instalments over a set period. It’s widely offered at online checkouts and often promoted as interest-free.

It’s quick, convenient and usually doesn’t involve a formal credit check – but that could soon change.

Rachel Duffey, CEO at PayPlan, says:

“Buy Now, Pay Later can offer short-term breathing space – but it’s becoming a long-term burden for many people. We’re supporting more clients than ever who are juggling multiple repayments. We know for some people it can offer a helpful way to manage spending, but for others it can lead to overspending, confusion and growing debt. If it’s starting to feel unmanageable, please don’t wait to ask for help – the right support can make all the difference.”

Regulation is coming – and it will affect how BNPL works

The government recently confirmed that from July 2026, BNPL lenders will be regulated by the Financial Conduct Authority (FCA). This means:

  • Shoppers will face stricter affordability checks
  • Some people may be refused BNPL credit if it’s not considered affordable
  • Providers will need to give clearer, fairer information about fees, terms and consumer rights
  • People will gain access to Section 75 protection and the Financial Ombudsman Service

These rules are designed to protect consumers from taking on too much debt or being caught out by late payment fees – and to slow down that “one-click” access to potentially unaffordable credit.

The changes are welcome – but they’re not in place yet. Until then, BNPL remains unregulated, and many people are unaware of the risks.

Who’s using BNPL – and what for?1

BNPL is especially popular with younger adults and parents, according to new research from TransUnion:

  • 15% of UK adults use BNPL for purchases under £50
  • 4% use it for items under £25[2]
  • 1 in 5 people aged 18-24 use BNPL for small essentials, including weekly food shops and takeaways.

Parents are also turning to BNPL for school costs

  • 6% of UK adults use BNPL for school supplies
  • This rises to 15% for parents aged 25-34
  • 19% of those using BNPL for school items describe themselves as financially comfortable – suggesting that BNPL is often used for convenience, not just necessity

Why do people choose BNPL?

Many people turn to BNPL because:

  • It helps spread the cost – especially when cashflow is tight
  • It’s quick and easy – with simple application processes
  • It’s everywhere – often the most visible option at checkout

In fact, more than 1 in 4 UK adults now say they prefer BNPL over credit cards for everyday spending1. But there’s a catch, with payments spread across different providers and dates, it can be easy to lose track and the costs can build up fast.  

The risks of Buy Now, Pay Later to watch out for

Overspending without realising

Breaking purchases into smaller payments can make them feel more manageable – but if you’re not keeping track, the total can quickly snowball.

Hidden fees and charges

While BNPL is often advertised as interest-free, missing a payment can trigger fees or charges. These aren’t always obvious upfront, and they can build up quickly if you fall behind.

Credit score impact

Late or missed payments can result in defaults or negative markers on your credit file. This can affect your ability to get a mortgage or loan in the future.

If BNPL repayments are becoming difficult, you’re not alone

We support thousands of people every week who are struggling to keep up with rising costs, debt repayments and financial pressure.

You don’t need to wait for things to get worse.

Call us free on 0800 813 1833, use Live Chat on payplan.com or fill out our form to connect with us on WhatsApp.

[1] Data retrieved within PayPlan for clients who have come to our Helpline team and have and have a BNPL account with a balance of £50 an under on the 18/7/25.

[2] https://newsroom.transunion.co.uk/over-one-in-seven-brits-now-use-buy-now-pay-later-for-bitesize-purchases