Over 1 in 5 shoppers using BNPL credit for Xmas shopping

More than one in five shoppers are using “buy now pay later” (BNPL) credit for their Christmas shopping, according to a new report by BNPL provider Butter. 

The research revealed that 22 per cent of shoppers planned to use BNPL for their Christmas shopping.

However, consumer crediting agency Equifax also saw similar statistics, with 28 per cent of UK consumers using BNPL credit in October, compared to 23 per cent in December 2020. 

Butter’s report also explained how the offer of BNPL credit has allowed retailers to benefit from higher sales, despite increasing the debt burden on consumers. 

In addition, 54 per cent of those who use BNPL say that it will help them spread the cost of their Christmas shopping.

READ MORE: Klarna sees its losses quadruple despite BNPL surge

“The older we get, the more we realise Christmas is about spending time with friends and family but for many, it can still be a very costly time of year,” Butter chief executive Timothy Davis said. 

“Overstretching financially can leave us facing a very long January and so it’s hardly surprising that in this day and age, lots of us opt to spread the cost rather than absorb it all during the month of December.”

Equifax chief product and marketing officer Jayadeep Nair added: “For switched on shoppers that want to smooth out their spending over the festive period, it can be an incredibly useful budgeting tool, and may soon even help those with thin credit files to build up a healthy credit score.”

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