London, 1 September 2026 – One in three young UK consumers are now skipping traditional credit cards entirely in favour of Buy Now, Pay Later (BNPL) services¹, according to the latest Equifax UK Affordability Barometer, which tracks consumer credit trends across major lending categories.

The findings point to an accelerating shift in consumer financing, with BNPL increasing its share of the retail finance market from 15% in January 2023 to 22% as of April 2026. Broad adoption also continues to hold, with nearly four in 10 (39%) UK consumers now using BNPL services², a rise from 33% three years ago.

The growth comes as the sector transitions into a newly regulated era under the Financial Conduct Authority (FCA). Under the regulatory framework, which came into effect this summer on 15 July 2026, BNPL providers are expected to  conduct proportionate affordability checks, integrate reciprocal data sharing with credit reference agencies, and offer structured support to consumers in financial difficulty. 

While BNPL can serve as a flexible budgeting tool for millions, Equifax data reveals that during peak shopping periods, as many as 45% of BNPL users manage five or more simultaneous transactions³.

Balancing multiple small instalments across platforms underscores the value of giving lenders a full, transparent picture of a household’s commitments, helping to support a scenario where  consumers continue to enjoy flexible credit safely without unintentional overreach.

Andrea Cox, Head of Affordability at Equifax UK, said: “BNPL use seems to be here to stay, with four in 10 consumers active users and now the safety and consistency of a regulated framework to match. We are seeing a generational shift in the consumer credit market, with younger demographics preferring point-of-sale flexibility over traditional credit card debt, and this trend is likely to shape the lending ecosystem for years to come.

“BNPL can be a key supporter of financial inclusion, offering young adults or other underserved customers accessible credit without pushing them toward high-cost or unregulated alternatives. The emergence of ‘micro-debt stacking’ is a trend to watch but what’s important is that greater data sharing and affordability checks are building a stronger ecosystem to help protect consumers against financial difficulty and unintended overreach without locking out responsible borrowers.”

To help check their credit health and monitor if their credit profile reflects all active commitments, consumers can access their Equifax Basic™ credit score for free and visit the Equifax Knowledge Centre for credit and debt management guidance.

Notes to editors

1. Based on 2025 Equifax consumer credit bureau tracking of 18-34 demographic credit adoption

2. 2025 full-year usage penetration tracking across UK adult consumers

3. Transaction frequency data from 2025