One-in-ten (8%) UK adults say they would be more likely to shop with a retailer that offers Buy Now, Pay Later services at checkout, according to a new survey commissioned by payments company Zip. The research highlights that Buy Now, Pay Later has become a key part of the modern financial toolkit. Shoppers who buy using Zip by 13th November can pay off their purchases in four bi-weekly payments by Christmas day.
This comes as more than 12 million Brits say they have used Buy Now, Pay Later in the past. And the research shows that the same proportion of respondents (8%) are considering using Buy Now, Pay Later this festive season to buy gifts. The top reasons for using Buy Now, Pay Later among its users include the ability to spread the cost of a purchase (49%) and to help budget and manage cashflow (35%). The Bank of England estimates that the average monthly spend ahead of Christmas increases by nearly 30%.
The research also reveals that Brits wish they’d been taught more about their finances when they were young. In fact, four in ten (38%) – or nearly 20 million UK adults – told us they wish they’d learnt more about handling their finances in school or university. While the majority of Brits (87%) understand Buy Now, Pay Later, nearly one-in-five (17%) report feeling confused by credit cards and APR.
Ruth Spratt, senior director at Zip, said: “Buy Now, Pay Later services give consumers an easy and transparent way to pay. Our research also shows they are filling a gap in people’s personal finance toolkits, with a large proportion of the population wishing they’d had more education on financial affairs as children. Traditional financial products remain opaque and confusing, giving way to more modern services.”
Zip serves more than 120,000 UK customers, and more than 8 million worldwide, with retailers such as Homebase and The Fragrance Shop on offer. Top products that Brits are buying using the service include clothes (52%), personal grooming (18%), electronics (14%) and homewares (12%).
Spratt commented: “There is now an expectation from shoppers that retailers will offer Buy Now, Pay Later as an option at checkout – not just online, but in-store too. Merchants need to gear up for this now as we head into the start of the festive shopping period.”