BNPL Booms: 15% of UK shoppers plan a Merry Christmas on credit

By Gloria Methri

This holiday season, a significant shift in consumer spending habits is underway as 15% of UK shoppers turn to Buy Now, Pay Later (BNPL) to fund their Christmas cheer. According to Marqeta’s State of Credit report, this trend mirrors the growing preference for online shopping and digital payment solutions.

Only 24% of respondents plan to shop in stores in 2024, a stark drop from 50% in 2023. Meanwhile, nearly half (47%) of UK shoppers say they will rely on digital wallets for their holiday purchases, underscoring a pivot toward tech-savvy, flexible payment options.

BNPL Gains Traction

While 36% of UK consumers are expected to use BNPL this season, the reasons for doing so are changing. Short-term credit is evolving from a necessity to a financial strategy:

• Better budget management (44%),
• Convenience (43%), and
• Payment flexibility (37%) was cited as a top motivator.

Notably, reliance on BNPL due to a lack of alternative credit options has nearly halved, dropping from 15% in 2023 to 8% in 2024. Additionally, 62% of respondents said they would proceed with purchases even if BNPL weren’t available, signalling that while BNPL enhances convenience, it’s no longer a crutch for holiday shoppers.

Marcin Glogowski, SVP and UK CEO at Marqeta highlighted the transformation, saying, “BNPL has matured from being an alternative payment option to a staple in everyday shopping. This shift reflects British consumers’ growing focus on financial well-being and smarter borrowing strategies.”

Flexibility Fuels Innovation in Payments

The demand for innovative financial solutions is evident, with 44% of respondents expressing interest in a payment card that combines debit, credit, and BNPL functionalities.

This appetite for flexibility has fueled advancements like Marqeta Flex, a BNPL solution that integrates directly into payment apps and wallets. Collaborating with Klarna, Affirm, and the payments platform branch, Marqeta Flex promises to offer BNPL options seamlessly at the point of purchase.

“We’re committed to making BNPL accessible across diverse payment experiences, ensuring consumers have more choice and control over their finances,” added Glogowski.

Holiday Shopping Meets Financial Savvy

The report also revealed an encouraging trend: 51% of UK consumers feel financially better off compared to last year, with many reporting increased savings in the run-up to the holidays. This optimism aligns with the strategic use of credit and the burgeoning appeal of tools like BNPL, which offer more than just deferred payments—they empower shoppers to align their spending with their financial goals.

As the festive season kicks off, UK shoppers are proving that holiday cheer doesn’t have to come at the expense of financial health. With smarter borrowing and innovative payment solutions at their fingertips, they’re redefining what it means to “Buy Christmas Now, Pay Later.”