New research from leading international payment service provider and UK and Europe direct bank card acquirer, Ecommpay, reveals that men are more likely to use Buy Now, Pay Later (BNPL) (44 per cent) compared to women (35 per cent) this Black Friday. When asked why, two in five consumers (39 per cent) cited the increasing cost of living and inflation as their reason for using BNPL services more in 2023 – with expected use up from 35 per cent in 2022.
Originally an American shopping event, Black Friday has caught the attention of many hoping to secure a bargain in the UK in recent years. In fact, almost one-third of consumers who shopped Black Friday deals last year (28 per cent) are planning to increase their spending as they navigate rising prices this year. With consumers spending an average of £101.18 during 2022’s Black Friday, retailers will welcome this boost to spending. Men in particular are most likely to increase their spending during this year’s shopping event (34 per cent) and they also spent more last year, averaging £134.72.
Continuing to look specifically at repeat Black Friday shoppers, almost half plan to use BNPL for their purchases this year (44 per cent). This has jumped from 36 per cent in 2022.
Younger generations are most likely to explore BNPL options for their shopping with 58 per cent of consumers between 25 and 34 years of age, and 57 per cent of those between 35 and 44 planning to use the credit service for Black Friday purchases as they navigate the impact of the cost of living crisis. This drops from over half to around a third of consumers between 45-54 and less than a quarter of consumers aged 55+ (38 per cent and 20 per cent respectively).
Early in 2023, it was announced that BNPL lenders would be subject to FCA regulatory oversight. Most consumers are now aware of these new regulations (56 per cent), with 30 per cent of shoppers feeling more comfortable using the service. Men are more likely to be aware of regulations (61 per cent) and more confident using the payment option (33 per cent). While most business leaders (62 per cent) say they feel more comfortable offering BNPL as a payment option after learning of the upcoming regulations.
Interestingly fewer consumers now feel BNPL encourages them to spend more than they can afford, this figure has dropped from 58 per cent in 2022 to 52 per cent in 2023 signalling greater confidence is building with the latest regulatory intervention. Although 45 per cent of consumers feel further BNPL regulations are still required, this is dropping year-on-year from just over half in 2022 (51 per cent). While men, the most frequent users of BNPL, feel slightly more strongly about wanting more regulations (51 per cent).
Businesses are meeting this increasing confidence by investing in offering the payment option. The majority of business leaders say their business now offers BNPL as a payment option for their checkout (59 per cent vs 42 per cent in 2022). Almost three-quarters of businesses that offer the payment option (73 per cent) say they have experienced more of their customers using the option as inflation increased. So, with a competitive golden quarter well underway, most businesses (65 per cent) who offer BNPL at checkout plan on promoting its use for Black Friday.
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