• Rich Bayer, CEO of Clearpay at Block


• 10.11.2025 03:15 pm
#LendingInnovation #Fintech

Consumers need flexibility when it comes to borrowing. Traditional credit models are fast becoming outdated and unfit for purpose, with outstanding credit card debt now standing at £76.1 billion, up 6.6% in the past year, according to The Money Charity. That’s £2,632 per household on average, a sign that many are struggling to balance rising costs with rigid, interest-based repayment systems.

It’s no surprise, then, that people are rethinking their relationship with credit. A growing number of consumers are looking for flexible, interest-free alternatives - tools that give them control over their money rather than leaving them trapped in cycles of debt. 

The consumer mindset around credit is changing. They want smart credit options that work for them. Today’s consumers are rewriting the rulebook, embracing products that align with their values and empower them to plan, and manage their payments. 

A huge part of this transformation is down to Buy Now, Pay Later (BNPL), a tool that’s helping millions across the UK take a more intentional and confident approach to managing their spending.

A new conversation about credit

There is a movement taking place - people are talking more openly about how they spend, save, and borrow, and they are demanding better flexibility and transparency from financial providers.

Clearpay’s latest research shows that 58% of UK consumers view non-traditional credit options like BNPL as more accessible, empowering, and innovative than traditional products. Over half (55%) say they use BNPL primarily to spread costs, while nearly 40% use it as a budgeting tool. This is backed up by internal data, which reveals that 95% of transactions are paid on time and 90% are made with a debit card. This indicates that Clearpay is being used as a planning tool to avoid high-interest debt and manage everyday expenses responsibly.

At the same time, one in five consumers are actively reducing their credit card use, and 44% say their top financial priority is having products that charge no interest at all. Flexibility and fairness are no longer nice-to-haves, they are the baseline expectation.

The generation driving change

Millennials and Gen Z are leading this change. Clearpay’s data shows that one in five UK adults now use BNPL services, with usage particularly high among those aged 18–35. Interest-free instalment payments are the most preferred option across all generations, but among Gen Z, usage is twice as high as the national average, and over half have moved away from credit cards entirely.

More broadly, 75% of Brits say they would prefer to see the current APR-based system replaced with interest-free instalment models. What this tells us is that consumers are not rejecting credit, they are rejecting the traditional and outdated way of using credit. They want tools that are transparent, fair, and aligned with their values.

From revolving debt to intentional credit

Representing a decisive shift from revolving debt to intentional credit, today’s consumers have an expectation of choice and flexibility. Over half (52%) want to see financial product comparisons at the checkout, with 44% favouring interest-free options. 

For many, BNPL delivers that flexibility - two in five consumers say they would shop in-store more often if BNPL were available. This trend is driving businesses to think about the payment options they offer. 

Keeping pace 

With BNPL regulation set to take effect next summer, it is vital that merchants keep pace with consumer expectations. The modern credit landscape is evolving rapidly.

For providers, this is an opportunity to innovate and reinforce what the best in the sector are already doing: offering transparent, fair, and flexible payment options that empower consumers to manage their money on their own terms.

The UK is entering a new era of financial confidence, where managing credit is seen as smart. BNPL has a role to play in that journey by helping people take control, plan better, and move to a culture of financial empowerment.