Research Note: Deferred Payment Credit: findings from the Financial Lives Survey

This research uses Financial Lives Survey data and explores how people are using Deferred Payment Credit and how its use impacts them.

Research Note: Deferred Payment Credit: findings from the Financial Lives Survey (PDF)


In this research note, we explore the use of Deferred Payment Credit (DPC), also known as unregulated Buy Now Pay Later (BNPL), by consumers in the United Kingdom. We cover its growth in use, the demographics of users, how and why it is used, and the impact of its use. We also explore how it relates to the use of other forms of credit.

This analysis helps to inform the FCA’s position on DPC. While currently not regulated by the FCA, Deferred Payment Credit is expected to enter the FCA’s regulatory remit. This would mean that providers of DPC would need to be authorised by the FCA and meet the legislative and regulatory requirements applicable to most forms of regulated credit, including the Consumer Duty.

We will continue to monitor the use of DPC and analyse a range of data sources to understand its impact on consumers.


Anya Martin


Research notes contribute to our work by providing rigorous research results and stimulating debate. While they may not necessarily represent the position of the FCA, they are one source of evidence we may use to discharge our functions and inform our views. We strive to ensure research outputs are accurate, through checks including independent referee reports, but the nature of such research and choice of research methods is a matter for the authors using their expert judgement. To the extent that research notes contain any errors or omissions, they should be attributed to the individual authors, rather than the FCA.