‘Buy Now Pay Later’ services gravitated 12% of the UK online spending in January, 2023 #
UK online spending amounted to £8bn total in January, while according to Adobe Analytics ‘Buy Now Pay Later’ services accounted for £1bn.
According to the analysis, the number was 10.7% higher than it was last year. BNPL services are offered by a large number of fintech providers, and in 2023 users are more likely to finance more costly purchases since the average order value grew 18% higher than it was in January 2022.
Due to a rise in the average cost of purchases, consumers are more inclined to use BNPL. Adobe research highlighted that in 12% of online purchases users chose to spread the costs over several months, which brought up the use of BNPL by 1.3% despide the overall reduction in cost spending.
Despite the short-term decline, the tendency is shifting more towards online purchases with 39% growth compared to January 2020.
Adobe research shows that the UK consumers prefer mobile devices for shopping with 60% of purchases being made via smartphones, which is 10% higher than last year. In total, consumers spent £4.7bn using mobile devices in January.
Suzanne Steele, VP and managing director for Adobe, commented on these data, “While the suggestion by the Bank of England that inflation may have peaked is good news in the mid-to-long-term, the increased use of buy-now-pay-later services to spread the cost of January purchases shows that consumers are still keeping a close eye on their finances in the short term.”