Buy Now, Pay Later Booms Among Older Britons

The way Britain pays for things is changing fast and not just among the young. New data from UK Finance shows that buy now, pay later services, once considered the domain of Gen Z shoppers, are now booming among older adults too.

In fact, uptake among 55-64 year-olds more than doubled in 2024, marking one of the biggest demographic shifts in how Britons manage their money. According to UK Finance’s annual report on payment trends, nearly a third of UK adults lived largely cashless lives in 2024. For the first time ever, cash accounted for less than 10% of all payments across the country.

Meanwhile, digital wallets such as Apple Pay and Google Pay have become mainstream and are used by more than half of UK adults. Mobile banking has also overtaken branch and desktop access as the primary way people manage their accounts. But as convenience grows, so do concerns. The cash machine network Link has warned against “sleepwalking into a digital-only society before everyone is ready,” highlighting the risk of leaving behind those who still rely on cash.

In just one year, the proportion of adults using buy now, pay later rose from 14% to 25%. Traditionally seen as a millennial and Gen Z habit, buy now, pay later lets shoppers spread payments for everything from clothes and tech gadgets to white goods and gig tickets, often with no interest if payments are made on time.

While younger shoppers remain the heaviest users, UK Finance found that the sharpest rise came from the 55–64 age group, where usage more than doubled in 2024.

Several factors are driving older Britons toward buy now, pay later:

• Budget pressure: Rising living costs mean many are using buy now, pay later to spread the cost of essentials.

• Familiarity: For those used to old-school interest-free credit or hire purchase, buy now, pay later feels like a modern twist on something they already know and they have seen friends and family use it.

• Ease of use: It’s built into online and in-store checkouts, making it a frictionless part of the shopping experience.

The Financial Conduct Authority (FCA) has been watching the £13bn buy now, pay later market closely. Regulators have expressed concern that some consumers may be taking on more short-term credit than they can afford, potentially leading to debt traps.

This summer, the FCA outlined new proposals to bring buy now, pay later under formal regulation, which could include affordability checks even for small purchases.

With more people than ever turning to digital payments and buy now, pay later use expanding across all age groups, the UK is clearly moving toward a cash-light economy.

But the trend raises big questions about financial inclusion, consumer protection, and digital exclusion. Buy now, pay later may seem like it is making life easier for millions, but as its popularity grows, so too does the need for safeguards to ensure it doesn’t become a new source of debt for Britain’s most vulnerable households.

Analysts warn that a significant share of this older group may reach retirement with ongoing debts and dependence on the state pension as their sole source of any income, raising concerns about financial insecurity in later life.

While the shift to digital payments offers convenience and speed to many, it also risks deepening digital exclusion, particularly among older and more vulnerable people. As more retailers and public services move toward card-only transactions, those who rely on cash, often pensioners or those without access to smartphones or internet banking, are finding it increasingly difficult to manage their money or even make everyday purchases.

This issue is compounded by the wave of bank branch closures across the UK, which has stripped many communities of in-person banking support and cash access. For older people who prefer face-to-face service, do not want to use online banking, or who may lack digital confidence, the combination of a shrinking cash infrastructure and reduced physical banking options risks leaving them behind in an economy that’s rapidly going cashless.

The NPC campaigns for Connections for All, and that Government, other statutory bodies and businesses have a responsibility to ensure that access to information and services are supplied to older people in the form is most suited to their needs.