Recent data from RSM UK reveals a concerning trend among millennials and Gen Z consumers, with 13% and 11%, respectively, planning to finance their Christmas shopping through buy now pay later (BNPL) services. This growing reliance on credit is alarming, especially against the backdrop of the ongoing cost-of-living crisis. RSM UK's risk assurance director, Zoe Morton, has called for immediate regulation of the BNPL industry, emphasizing the need to protect vulnerable customers from falling into spiraling debt. As BNPL app downloads soar, with a significant rise in monthly active users, the urgency for regulatory measures becomes even more pronounced. Proposed regulations would require lenders to conduct affordability checks and ensure that customers fully understand loan agreements before committing. Retailers must also prepare for the potential changes, which could affect consumer rights regarding returns and refunds. The call to action is clear: proactive measures are essential to safeguard consumers during this critical spending season.
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