The Rise of ‘Buy Now, Pay Later’ Services
‘Buy now, pay later’ services are experiencing a significant surge in popularity among older individuals, according to recent research by UK Finance. The report reveals that the percentage of pensioners utilizing BNPL services has doubled in 2022 compared to the previous year. Initially targeted at young shoppers with colorful and upbeat social media marketing strategies, BNPL providers are now capturing the attention of a broader demographic.
Changing Consumer Behavior
Myron Jobson, senior personal finance analyst at Interactive Investor, highlighted that the appeal of BNPL has expanded beyond younger generations. He notes, ‘The percentage of pensioners using BNPL services doubled in 2022 compared to the previous year. This suggests that pensioners, who are increasingly feeling the cost-of-living pinch, have turned to BNPL services as a means to cover their expenses.’
Rapid Growth of Contactless Payments
In addition to the rise of BNPL services, the UK Finance report also highlights the continued growth of contactless payments. Contactless payments have experienced a 30% year-on-year increase in 2022, indicating the enduring shift from cash to cashless payment methods, which initially gained momentum during the pandemic.
Permanent Transition to Cashless
Jobson observed, ‘The significant increase in contactless payments suggests that the transition from cash to cashless payment methods adopted during the pandemic has solidified. Some businesses that had temporarily become card-only establishments during the health crisis have chosen to remain cashless and do not plan on reverting back.’
