THEY are schemes typically associated with younger people keen to get what they want now, rather than waiting to save up, but research shows “Buy Now Pay Later” is on the rise with older shoppers.

It’s hardly new…?

The concept, of course, dates back through history to the first real instalment plans of the 19th century that enabled customers to purchase high-cost items – such as furniture or farm equipment – but pay over time if unable to buy outright.

Buying on tick?

This British expression relates to smaller shops where customers were known to the seller who would allow them to buy if they paid back little by little, with “tick” thought to be short for the “ticket” – or written note – that would be given by the lender to formalise an agreement of return.

It’s all digital now?

Digital payment options that enable buying now and paying later – such as Klarna, Clearpay, Laybuy and PayPal’s Pay in 3 options – have grown in popularity in recent years, with one in three UK consumers turning to these payments more often in lockdown than ever before. And although it used to be turned to for big-price items, such as white goods, it is now used to for everyday smaller buys.

Demand is rising?

Despite concerns over regulatory scrutiny and the easy build-up of consumer debt, demand for BNPL has surged across all age groups in the UK, new research shows. According to money experts Finder, who polled 2,000 people across the UK at the end of January 2023, more than a third (35.5 per cent)  said they have used BNPL in the last 12 months, while 42% said this was the first time they turned to it.

And older people are jumping on board?

The impact of the cost-of-living crisis has seen an uptick in older demographics using BNPL – 20 and 30-somethings are still those who use it most, but over-55s are the fastest-growing age group – 18% have used BNPL and half only started using it within the last 12 months.

What else does the research say?

Research – commissioned by UK-based financial education charity the Centre for Financial Capability – found nearly 20% of over-65s have used it in the last year - up from 10% last year. Jane Goodland, trustee of the Centre for Financial Capability, said: “The fact that people of all ages are turning to buy now, pay later as they are struggling to meet payments due to rising inflation shows the need for urgent regulation of these schemes.”

What is the latest?

Just last month, the government pledged to clamp down on unregulated BNPL firms and offer stronger consumer protection as it launched an eight-week consultation on regulatory proposals, saying they would mean such products would be regulated by the Financial Conduct Authority, while consumers would be given the right to have their complaints reviewed by the financial ombudsman.

This would be a game-changer?

The government estimates the new rules could help protect about 10 million consumers from “unconstrained borrowing”. Labour MP Stella Creasy, a long-time campaigner for such a move, said: “Having finally agreed to bring the ombudsman in, the government must expedite the necessary regulation because millions more people are now in debt to these companies.