Adobe’s research arm, Adobe Analytics, has compiled a study which shows that Buy Now, Pay Later (BNPL) spending in the UK has risen by 10.7% in the first month of 2023 compared to the same period last year.
The data reveals that this January saw UK customers spending around £8bn through BNPL, which has accounted for a total of 12% from all online purchases in that month.
Adobe has highlighted this as an indication of shoppers becoming “more price-conscious in the cost of living crisis”, although the firm has also registered that the value of BNPL purchases is also increasing.
Suzanne Steele, Vice President and Managing Director of Adobe UK, said: “Taking into account the increased pressure on consumer spending power this year compared with 2022, a year-on-year drop of just 1.4% in January online spending shows that the post-Christmas sales period still holds great importance for retailers and shoppers alike.
“While last week’s suggestion by the Bank of England that inflation may have peaked is good news in the mid- to long-term, the increased use of BNPL services to spread the cost of January purchases, shows that consumers are still keeping a close eye on their finances in the short term.”
By taking another look at the study, readers will also notice that mobile payments are becoming increasingly popular every year, with 59.7% of consumers collectively spending up to £4.7b on online BNPL purchases this January.
Another interesting fact is that click-and-collect is also being more sought after, with average monthly purchases of this type increasing by 2% from last year as consumers look to save on delivery fees.