A smart shopping tool – or a dangerous habit?
Buy Now, Pay Later (BNPL) services like Klarna, Clearpay, and Afterpay have become increasingly popular. These services allow shoppers to pay in instalments, either within 30 days or spread over several months, often interest-free. Retailers cover the cost upfront and pay the BNPL provider a fee. While it sounds convenient, BNPL can encourage overspending, as consumers may feel they can afford more than they actually can.
Is BNPL safe? Yes, the companies are legitimate, but it may not be the safest financial choice long-term, as it delays the inevitable worry of repayment.
People often use BNPL for a variety of purchases, such as:
Clothing and Fashion: Buying new outfits, shoes, or accessories without paying the full price upfront.
Electronics: Paying for gadgets like smartphones, laptops, or gaming consoles in installments.
Home Appliances: Spreading out the cost of household items like refrigerators, washing machines, or air fryers.
Beauty Products: Purchasing skincare or makeup items from premium brands.
Holiday and Travel: Paying for flights, hotel bookings, or packages over time.
In 2023, Derbyshire Community Bank ran a survey to gather feedback from members and the public about their use of BNPL services, whether they saw it as a positive or negative option, and if they had used it in the past. We received valuable insights, which help us improve our services. Thank you to everyone who participated!
| Question | Summary | |
|---|---|---|
| Have you used BNPL (Buy Now, Pay Later)? | Balanced | Yes: 42.5% / No: 57.5% |
| What did you use BNPL for? | Mostly for clothes, with some for home, groceries, and equipment. | Clothes: 40% / Other: 60% |
| Was your experience with BNPL positive? | Majority of responses were positive, with some mixed opinions. | Positive: ~70% / Mixed/Unsure: ~30% |
| Rate your BNPL experience (1–10) | Average rating was 8/10. | Avg rating: 8/10 |
| Did you spend more than intended using BNPL? (1–10) | Most responses were in the lower range, indicating spending was controlled. | ≤5: ~60% / 6–10: ~40% |
| Would you recommend BNPL to others? (1–10) | 40% would recommend BNPL highly, but some had mixed feelings. | High (8–10): ~40% / Low (1–7): ~60% |
| Do you think Credit Unions should promote BNPL? | Opinions were divided, with a significant portion saying “maybe” or “no”. | Yes: ~35% / No: ~30% / Maybe: ~35% |
| Do you think BNPL is a bank service? | Most respondents did not see BNPL as a bank. | Yes: ~20% / No: ~40% / Unsure: ~40% |
| Is BNPL a form of debt? | Majority believe BNPL is a form of debt. | Yes: ~80% / No: ~20% |
| Do you think BNPL is better for shopping? | Responses were split: some think it’s helpful, others are cautious. | Yes: ~40% / No: ~30% / Unsure: ~30% |
| Do you think BNPL is safe? | Most believe BNPL is safe, but some are unsure. | Yes: ~45% / Unsure: ~40% / No: ~15% |
| What is your age range? | Majority were between 26–55 years old. | 26–55: ~80% / 36–45: ~30% |
| Do you think everyone should use BNPL? | Mixed opinions, with some being cautious about universal use. | Yes: ~30% / No: ~20% / Depends: ~50% |
| Have you shared your BNPL experience with others? | About 25% have shared positive or budgeting-related experiences. | Shared: ~25% / Not shared: ~75% |
