Europe Paytech

1 in 4 UK Consumers Used Buy Now Pay Later for Christmas Totalling £2.3 Billion in Credit

One in four consumers in the UK used a Buy Now, Pay Later credit scheme to pay for their Christmas shopping in 2020, totalling to £2.3 billion. Equating to 40% of all Christmas purchases in the UK, the reliance on credit comes as almost 9 million Brits find themselves in their worst financial position ever. As shown in new national research from the budgeting-app HyperJar, the pandemic has had a crippling impact on Britain’s personal finances, with a further 19% confessing that they have zero savings left as a consequence of the pandemic.

With 2020’s shattering impact on our national and personal finances, many of us now acknowledge need to be better with our money this year. However, with this resolution comes the realisation that the current banking system does not do enough to help us achieve our goals, as 70% feel that their bank doesn’t help them budget or plan their finances.

Key Research Statistics include:

  • 19% (8,921,000) agree that, due to the Covid-19 pandemic, they are in their worst financial position ever
  • 70% (31,500,000) say that their bank doesn’t help them budget and plan day to day finances
  • 52% (25,093,000) agree that the current banking structure leaves them with no incentive to save
  • 47% (18,981,000) agree that since the pandemic, they now acknowledge the importance of tackling bad financial habits
  • 19% (8,737,000) report that the fallout from Covid-19 has left them with no savings at all
  • 26% (12,522,000) say that, even before Covid-19, they had no savings or emergency buffer
  • 26% (12,715,000) admit to having no emergency funds to fall back on in the future
  • 18% (8,594,000) believe their finances are the least organised part of their life

HyperJar is a debit account organised by spending ‘jars’ to help personalise saving and spending goals. The app is now expanding its partner base to include SMEs, with local pubs, cafes, kids’ centres, speciality food shops and restaurants starting to join the app over the next few months.

Mat Megens, founder and CEO at HyperJar, said: “There’s been a hostile environment for saving and planning for years, and the gravitational pull of easy credit has never been stronger. A new way for people to budget and spend well is overdue.

“The effectiveness of splitting out budgets and naming savings goals is well known, and our early customers tell us that adding a fraction more friction to their spending – taking a bit of time to think about what they want to spend in future – works. Visualising and allocating their money like this gives them clarity, control and confidence.”

Author

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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