UK Buy Now Pay Later usage climbs ahead of new FCA oversight

Experian’s latest datasets highlight a robust market, recording over 100 million transactions across 8.5 million customers throughout 2025, totaling more than £7 billion in spending. Despite concerns regarding debt, 98.5% of balances were settled on time, with the average transaction value holding steady at approximately £60.

While the 25-34 age bracket remains the primary user base, the service is finding significant traction among older demographics. Customer volumes for those aged 65-74 surged 46% year-on-year, while usage among consumers aged 75 and over jumped 53%. John Webb, Head of Consumer Affairs at Experian UK&I, noted that while consumers use the tools to manage monthly budgets, they must remain cautious, as new accounts are now reflected on credit reports and may influence future mortgage or loan applications.