EXCLUSIVE: “Flexible Friends and Foes” – Joshua Fabian-Miller, Currys in ‘The Paytech Magazine’

BNPL is the fastest growing alternative payment method among consumers in the UK who want more choice in how and when they pay. Here and elsewhere it’s a trend that’s forcing retailers to rebuild credit products. Currys’ flexpay is one of them

Today’s consumers value flexibility. They expect it in the way they work to earn their money, whether it’s a remote/hybrid job or a handy side hustle, and they expect it in the way they shop.

This has given rise to the buy now, pay later (BNPL) phenomenon, essentially a short-term, point of sale financing option that allows them to pay for purchases over a set period of time. So long as they clear the balance within the agreed period, they don’t pay interest. A new wave of POS BNPL providers, including Afterpay and Klarna, have been busy strengthening their grip on checkouts in recent years, becoming household names in the process.

The statistics make for interesting reading. According to a new Finder survey, as of 2025 two in five UK adults (42 per cent) have used BNPL services at some point, which equates to approximately 22.6 million people. This is up from 36 per cent at the start of 2023. That trend is amplified globally. The study showed that around 380 million people around the world used BNPL services, and that’s predicted to increase to 670 million by 2028.

Such short-term financing is particularly popular amongst Gen Z-ers and Millennials, who are typically less wedded to traditional financial products, such as credit cards. A separate study by market research company Opinium has found that one in five (18 per cent) of Gen Z consumers in France, Germany, and the Netherlands now use BNPL. The psychology behind it is fascinating. Researchers at Imperial College London found that paying through BNPL helps people feel less financially constrained when compared to a lump sum payment (upfront or delayed).

This is seen as important as, regardless of how much actual disposable income someone has, it is their perceived financial constraints that will ultimately dictate their spending habits.

Plotting around the potential pitfalls

“Currys’ flexpay makes it even easier for customers to spread the cost of their tech, at the point of need”

Joshua Fabian-Miller, Currys

However, the psychology also helps to explain some of the pitfalls of BNPL. It’s driven by a paradox: it’s often used for luxury online shopping whilst at the same time many people are living through a cost-of-living crisis, prompting concern that it’s locking consumers into endless revolving credit. Detractors say BNPL often encourages unnecessary spending and point to a range of risks. These include consumers not fully understanding the BNPL product they have signed up for, which can lead to missed or late payments that may carry a penalty fee.

It’s as easy to fall behind with a BNPL payment schedule as it is with other bills – so it can be another layer of pressure for someone who is already struggling. Fifteen per cent of BNPL users have incurred late fees, with this figure rising to 22 per cent for those with ‘poor’ or ‘very poor’ credit scores, according to research carried out last year for the UK’s Lending Standards Board. Governments in the UK, the US and Australia have responded to these concerns by committing to bring previously unregulated BNPL providers into their financial regulator’s remit.

In the UK it’s expected that new rules will come into place in 2026 to protect consumers from unaffordable borrowing, with providers required to carry out affordability checks and become registered with the Financial Conduct Authority (FCA). The new rules will also ensure that consumers have clearer information and stronger rights if issues arise with products they purchase. According to specialist financial law firm Osborne Clarke, the impact of the UK changes is likely to mean that the choice of BNPL products available for consumers is reduced.

“Some currently exempt BNPL lenders may decide either to withdraw from the market entirely (rather than face the increased costs and operational burden of being an FCA regulated firm),” it said, “or to obtain FCA authorisation for lending but ultimately decide that it is no longer a cost-effective model to offer credit free of interest and charges to customers.”

In Holland, the Dutch government is trying to prevent the roll out of BNPL on the high street entirely, saying it is concerned about levels of consumer debt, especially among young people. Against this background, retailers are considering their options and reviewing the credit choices they offer customers.

Currys, the UK retail giant specialising in white goods, consumer electronics, computers and mobile phones, recently unveiled its revamped credit product, giving people more flexibility to pay in a manner that best suits them.

Currys’ flexpay, which replaces Your Plan, gives both online and in-store customers a choice of four products to spread the cost of purchases. Depending on the purchase, customers can select to pay interest-free with fixed monthly instalments over 12, 24 or 36 months; pay equal monthly instalments at low interest (currently 9.9 per cent) over a set 48-month period; pay monthly with a personalised interest rate on a plan fixed between 12 and 36 months; or buy now, pay later, paying as much or as little as they like over the offer period (usually six, nine or 12 months) with no interest charged, so long as the balance is cleared within that time.

“Younger people are less familiar with using a credit card. Many will have never had one, so they are looking for alternative solutions at point of sale to finance their purchases”

Julian Martin Capote, Miravia

Choice is the key word here, says Joshua Fabian-Miller, Consumer Credit Director at Currys, which revealed that more than 20 per cent of eligible spend now goes through its flexible payment option, exceeding that on traditional credit cards.

“Currys’ flexpay makes it even easier for customers to spread the cost of their tech, at the point of need,” he says.

The retailer’s refreshment of its credit offering was implemented following extensive research with staff and customers. Its aim is to make credit more personalised. The company also wanted to ensure it was presented to customers at the point of need, and that customers always know where they stand through the intuitive approach of its dedicated mobile app. Currys flexpay is markedly different from the retailer’s previous product. There is more functionality under the hood; more ways to flexpay in store; the ability to flexpay on additional hardware categories; a simpler and clearer application journey; and better visibility of existing borrowers’ credit balance across buying journeys. Currys says transparency sits right at the heart of the proposition.

In line with the forthcoming regulation around BNPL, credit is already only provided to customers who meet the affordability criteria. Currys cites a close and collaborative relationship with BNP Paribas Personal Finance as being critical to delivering better, clearer choices for customers.

“It’s the result of our strong, longstanding partnership with Currys and our deep understanding of their customers’ needs,” adds Stephen Hunt, CEO at BNP Paribas Personal Finance UK. “Together, we have developed a leading credit solution that offers flexible and affordable payment options, making it easier for customers to purchase amazing technology. “We’re excited to continue to support Currys in transforming the credit experience, delivering more accessible and responsible credit solutions.”

The introduction of Currys flexpay has had a big impact. The company has grown its active credit customer count to over 2.3 million. And these customers are the retailer’s happiest, with NPS scores 22 per cent higher than non-credit customers. They are also 20 per cent more likely to purchase complete solutions and linked products, and over twice as likely to return and shop again at Currys within 12 months. Flexpay is winning hearts and minds.

Julian Martin Capote, Head of Payments and Partnerships at Miravia, a new Spanish online retail channel targeted at younger consumers, wouldn’t be surprised at that.

“Consumer preferences are changing and businesses must adapt,” he told Payabl’s Pay It Forward podcast recently.

“BNPL is becoming a must-have solution for e-commerce platforms, especially when you are targeting younger audiences, because they are less familiar with using a credit card,” added Capote. “Many will have never had one, so they are looking for alternative solutions at the POS to finance their purchases. BNPL use is relatively low at two per cent in Spain, compared to our neighbours, [but] we realise the opportunity to reach higher penetration [because] it’s really important for Gen Z and Millennials.”

Standing in the way of credit innovations such as BNPL, as the Dutch government is attempting to do, could then be going against an unstoppable tide. But the success of Currys’ pick-and-mix approach to credit at the point of sale is perhaps a lesson in how BNPL can sit comfortably on a shelf of other products, giving consumers maximum transparency and choice.

This article was published in The Paytech Magazine Issue 16, Page 20-21