Introduction
According to new research, ‘Buy now, pay later’ (BNPL) services are gaining popularity among older people. UK Finance’s latest Payment Markets Report reveals that the percentage of pensioners using BNPL services doubled in 2022 compared to the previous year.
The Appeal of BNPL Services
BNPL providers often rely on colourful and upbeat social media marketing strategies that primarily target young shoppers. However, the appeal of BNPL has expanded, as indicated by the increasing number of pensioners utilizing these services. Myron Jobson, senior personal finance analyst at Interactive Investor, suggests that pensioners may be turning to BNPL services to cover their living costs as they feel the financial strain.
Growth of Contactless Payments
In addition to the rise of BNPL services, UK Finance’s report also highlights the rapid growth of contactless payments in 2022. Contactless payments increased by almost a third (30%) year-on-year. This surge in popularity demonstrates the enduring shift from cash to cashless payment methods, which gained momentum during the pandemic to prevent the spread of infection.
Some businesses, which adopted a card-only policy during the pandemic, have not reverted to accepting cash and have no plans to do so in the future.
