Buy now, pay later used more by older customers

Older people are more likely to use buy now, pay later (BNPL) schemes to purchase items they cannot afford than young people, research has found.

A survey of 2,100 people by the financial literacy charity, the Centre for Financial Capability, found that 23 per cent of over 65s who have used BNPL did so as they were not able to afford the full price at the time. This compared to just 18 per cent of 18 to 24-year-olds who used BNPL.

The charity warned that many people using BNPL, which often appears as an option on online checkouts, did not realise they are a form of credit that can incur penalty charges and damage credit ratings if payments are missed.