BNPL users need more protection to avoid a looming crisis in the financial services sector | Maru Group

Young man opening a box next to his computer monitor.
Regulations are needed to protect vulnerable consumers from from growing BNPL debt.
Many Gen Z consumers have often spent all their money before their next pay.

Who is using BNPL?

BNPL emerged in the findings as a popular means for many (27%) U.K. consumers who used the short-term financing service throughout 2021 — with one-in-five (21%) specifically using it for their Christmas shopping.

Blue tile giving statistic that 68% of those under 35 have more than one BNPL agreement.
A majority of consumers have more than one BNPL agreement.

Where this is leading

Whilst for some consumers it may be a convenient way to break down their shopping payments into interest-free chunks, the rapid up-take by the younger generation who use the product as a financial stopgap reveals that vulnerable consumers may need more protection from signing up to more than they can afford.

Methodology

These are some of the findings released by Maru Public Opinion from a survey undertaken December 10–13, 2021, by Maru/Blue of 1017 randomly selected U.K. adults who are Maru Voice online panelists. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.1%, 19 times out of 20. The results have been matched to the population according to census data which ensures the sample is representative of the entire adult population of Britain. Discrepancies in or between totals when compared to the data tables are due to rounding.

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Maru helps its clients make informed decisions in real-time by combining proprietorial software, deep industry experience, and unique IP in system 1 apps.

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Maru = Software + Advisory Services

Maru helps its clients make informed decisions in real-time by combining proprietorial software, deep industry experience, and unique IP in system 1 apps.