BNPL is now a must have payment type in the UK

18th October 2021


PSE Consulting recently conducted a review to understand BNPL’s penetration into the UK’s top 100 online retailers. The focus of the analysis is BNPL offers made on the merchant site, rather than those made by card issuers or wallet owners as part of the off-site authentication journey, or post transaction.

The analysis also compares BNPL to other commonly used payment types: cards and PayPal.


1. BNPL Market Penetration

While cards still account for almost 70% of online spending in the UK, their role as the exclusive form of payment offered by large merchants is rapidly waning. Only 13% of the UK’s top 100 online retailers rely solely on cards for payments and 42% now offer a pay later option.


2.BNPL Offer Timing

Merchants influence consumer spending behaviour by making BNPL offers on the landing and product pages, with only 9% waiting until check-out to surface the BNPL brands.


3. BNPL Brand Reach

Klarna is present at almost a third of the UK’s top 100 online retailers, and although PayPal’s “Pay in 3” offer is only surfaced at 1 in 10 websites, their BNPL offers were made in 59 of check-out redirects.


4. BNPL Brand Reach

While vast majority of merchants surface only one BNPL provider, which is mostly Klarna, many BNPL brands are surfaced as part of a BNPL bundle.


You can access the full report below. For any queries please contact


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