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Buy Now Pay Later use among PayPlan customers in the UK rose by 3,793% between 2020 and 2025. The debt advice provider also found that most people it surveyed did not know about incoming rule changes for the sector.
The figures point to a sharp rise in instalment credit use among people already seeking debt help, as tighter oversight of the market takes effect. Providers will be required to carry out affordability assessments and give consumers clearer information about repayments, fees and protections.
PayPlan also found a wide gap in awareness of the new framework. Around 85% of consumers interviewed said they were unaware of the regulatory changes, although all supported regulation once they had been told about it.
Its analysis suggests the product has become part of routine household budgeting for many borrowers, rather than a tool used only for discretionary purchases. Nearly two-thirds, or 62%, of BNPL users surveyed said they had used it to pay for higher-value items such as washing machines, laptops and televisions.
The average number of BNPL accounts held by users also increased over the five-year period, rising from 1.25 in 2020 to 1.91 in 2025. In 2025, 66% of consumers had one BNPL account, 20% had two, 5% had three, 3% had four and 6% had five or more.
Who is using it
Millennials accounted for the largest share of disclosed BNPL usage among PayPlan customers at 54%. Generation X represented 28%, while Generation Z accounted for 12%.
By gender, men made up a slightly larger proportion of BNPL accounts than women, at 51% compared with 41%. PayPlan did not provide further detail on the remaining share.
BNPL products let shoppers defer payment, usually by splitting a purchase into smaller instalments over a fixed period. They are commonly offered at online checkouts and are often marketed as interest-free, though missed payments can still lead to fees and wider financial strain.
The growth in BNPL use has coincided with signs of stress elsewhere in the borrowing market among people in financial difficulty. PayPlan's 2025 data recorded the highest level of loan shark borrowing disclosures.
Regulatory shift
The new oversight comes as policymakers and debt advisers examine whether the rapid spread of short-term instalment products has outpaced consumer understanding. Greater disclosure requirements and affordability checks are intended to bring BNPL closer to other forms of regulated credit.
For debt advice providers, the issue is not only the scale of uptake but the role these products now play in covering essential and semi-essential purchases. The data indicates that some households are using this form of borrowing to spread the cost of goods that might previously have been paid for through savings, mainstream credit or delayed spending.
Rachel Duffey, Chief Executive Officer of PayPlan, welcomed the changes.
She said: "We welcome the regulation of Buy Now Pay Later products and the additional protections it will provide for consumers. However, BNPL has become an important financial tool for many households navigating ongoing cost-of-living pressures. People are increasingly using these products not just for discretionary spending, but to manage larger household purchases and, in some cases, everyday expenses. As the new rules come into force, it is vital that regulators, lenders and the debt advice sector work together to ensure consumers continue to have access to safe, affordable credit. We encourage consumers to familiarise themselves with the upcoming changes and seek free debt advice if they are struggling to manage repayments across multiple credit products."
The data adds to a wider debate over whether stricter checks in one part of the credit market could push some borrowers towards less visible forms of lending. PayPlan said the rise in illegal lending disclosures underlined the pressure on some households as they try to manage essential costs and existing debts.
Its figures also suggest BNPL borrowing is no longer concentrated among occasional users with a single account. A notable minority now holds multiple agreements at the same time, which can make it harder for borrowers and advisers to track total repayment commitments across different providers.
For lenders, the incoming rules are likely to increase scrutiny of how these products are presented at checkout and how clearly repayment obligations are explained. For borrowers already under financial pressure, the PayPlan data suggests awareness of those protections remains low even as use of the products continues to climb.