Shoppers rack up £3.3bn BNPL debt in festive spending spree

Published: 2022-01-21 01:21:10 ET APT.AX

SHOPPERS racked up £3.3bn of debt using buy-now-pay-later (BNPL) products in a spending spree over the Christmas period, new data has revealed.

BNPL spending rose by £1bn over Christmas as Brits took advantage of products offered by fintech firms like

Klarna and Clearpay but 40 per cent of consumers are yet to pay the debt back, according to data from money platform Credit Karma.

The warning from Credit Karma comes as government prepares for a regulatory clampdown on the sector after former FCA boss Chis Woolard last year warned of the urgent need for regulation.

(c) 2022 City A.M., source Newspaper