Flexible Payments, Real Impact

Independent retail has always been about meeting people where they are, with products that speak to them, service they can trust, and experiences that feel personal. But in today’s climate, where every sale matters and loyalty is hard-won, it’s also about offering payment options that make life easier.

Buy Now Pay Later (BNPL) is no longer just a nice-to-have. It’s fast becoming a core part of the retail toolkit, not just for the big names, but for independent retailers who want to stay relevant, responsive, and resilient.

So, what’s driving this shift? And more importantly, what could it mean for your business?

The Rise of BNPL in the UK

BNPL is one of the fastest-growing payment methods in the UK. Transaction values are forecast to reach £27.1 billion by 2025, a significant leap from previous years, as more consumers seek flexible, interest-free ways to manage their spending. In fact, UK BNPL transactions are expected to grow by 12% year-on-year, placing the country among the top BNPL markets in Europe.

At its core, this shift reflects what today’s customers want: convenience, control, and the ability to spread the cost of larger purchases without incurring additional financial strain.

Why BNPL Matters for Independent Retailers

1. Boost Sales and Average Order Value

When you remove the pressure of paying all at once, more customers are willing to buy — and they often spend more. Retailers offering BNPL consistently report improved conversion rates and an uplift in basket sizes. It turns hesitation into action.

2. Reach New and Younger Shoppers

BNPL is especially popular among younger consumers. Nearly half of 16–24-year-olds in the UK have used a BNPL service, making it a powerful way to tap into a digitally savvy, fast-growing market. For them, flexibility isn't a perk — it’s expected.

3. Create a Frictionless Shopping Experience

Whether in-store or online, customers want things to feel easy. A clunky checkout experience — or limited payment options — can cost you a sale. BNPL offers a modern, streamlined way to pay, helping you stand out in a crowded market and encouraging repeat custom.

4. No Credit Risk on Your Side

With BNPL, the provider takes on the credit risk. You get paid upfront, and they handle the rest, including any defaults or repayment issues. That means more cash flow certainty for your business, without the financial risk.

How to Get Started with BNPL

You don’t need to overhaul your business to offer BNPL. Here’s how to bring it in, step by step:

• Choose a provider: Klarna, Clearpay, Laybuy and PayPal Pay in 3 are all widely used and trusted in the UK.
   

• Integrate online: Most providers offer plug-and-play integration for platforms like Shopify, WooCommerce, and Magento.
   

• Offer it in-store: BNPL isn’t just for e-commerce. Many providers also support physical retail transactions, allowing you to offer a seamless experience across all channels.
   

• Let people know: Make BNPL visible on your website, in-store signage, social channels, and at checkout — customers won’t use what they don’t know is there.
   

A Note on Regulation

As BNPL becomes more mainstream, regulation is catching up. The Financial Conduct Authority (FCA) is set to oversee the sector more closely, with plans for stricter affordability checks and more explicit consumer protections. For independent retailers, this should bring greater confidence and transparency — good news for everyone involved.

Key Takeaways

• BNPL transaction values in the UK are projected to hit £27.1 billion in 2025
   

• That’s a 12% increase on 2024, with the UK leading in Europe
   

• BNPL helps boost sales, increase average order value, and reach younger customers
   

• You’re paid upfront — the provider carries the risk
   

• Regulation is set to bring stronger consumer protections and market confidence
   

Final Thoughts

Retail is shifting, but some things never change: customers want to feel seen, supported, and able to make good choices. Offering flexible payment options won’t solve every challenge, but it can open the door to stronger sales, better experiences, and longer-term loyalty.

For independent retailers, embracing BNPL is a small step with real impact, one that meets customers where they are, without stretching your business where it shouldn’t be.

 

Sources:
Statista – BNPL Transaction Value in the UK
The Payments Association – BNPL in 2025: Regulation, reckoning, or reinvention?