Buy Now, Pay Later (BNPL) services have revolutionised UK shopping, with 2 in 5 UK adults (42%) having used BNPL services at some point, representing approximately 22.6 million people. As this payment method gains momentum, businesses offering BNPL options face unprecedented BNPL customer service UK challenges that require strategic approaches.
The BNPL Boom in the UK Market
The UK’s BNPL landscape is experiencing remarkable growth. The market is forecast to grow from £29.85 billion in 2024 to £47.27 billion by 2029, representing a compound annual growth rate of 9.8%. BNPL payments are expected to grow by 15.0% annually to reach $34.28 billion in 2024, highlighting the sector’s explosive expansion.
The popularity of services like Klarna, Clearpay, and Laybuy has transformed how consumers approach eCommerce purchases, particularly among younger demographics. However, this rapid adoption has created new customer service complexities.
Common BNPL Customer Service Queries
Payment-Related Issues and Klarna Support Queries
Over half of the people who used BNPL in 2023 paid a late fee (53%), affecting an estimated 10.6 million people. Common Klarna support queries and other BNPL payment issues include:
- Confusion about instalment payment schedules and due dates
- Failed payment notifications and late fee concerns
- Questions about credit agreements and total amounts owed
- Requests to modify payment dates
Returns and Clearpay Issues
One of the most challenging aspects involves managing payment disputes and returns. More than 13% of Buy Now, Pay Later transactions involve a return or dispute, creating complex scenarios.
Common Clearpay issues and other BNPL return complications include customers not understanding whether to contact the original retailer, the BNPL provider, or their bank. Unlike traditional credit cards, BNPL services often require customers to continue making payments while returns are processed, creating additional stress.
Managing Payment Disputes
When products don’t arrive or are defective, customers face challenges disputing charges while maintaining payment schedules. BNPL lenders generally require consumers to first contact the merchant to get credit for a return or refund, adding complexity to resolution processes.
BNPL products are currently not regulated by the Financial Conduct Authority, meaning customers cannot take complaints to the Financial Ombudsman Service, highlighting the importance of excellent first-line customer support.
The Growing Challenge of BNPL Complaints
The customer service landscape is becoming increasingly complex. Complaints against BNPL firms to the UK’s Financial Ombudsman Service increased by 36% over three years, rising from 162 complaints in 2020 to 220 in the following period.
Research indicates that 22% of BNPL users have missed one or more repayments in the six months to December 2023, creating substantial volumes of payment-related queries requiring sensitive handling.
Effective Strategies for Managing BNPL Customer Support
Transparent Communication and Financial Responsibility
Ensure all customer communications include exact payment dates, amounts, outstanding balances, and clear explanations of missed payment consequences. Proactively educate customers about how BNPL affects their credit profile, the importance of budgeting for future payments, and available support during financial difficulty.
Streamlined Dispute Resolution
Managing BNPL Queries with Smart Inbox solutions can centralise all BNPL-related communications, ensuring customers aren’t transferred between multiple departments. Establish dedicated workflows for return processing with active BNPL arrangements, payment disputes requiring merchant coordination, and technical payment processing issues.
Proactive Customer Support
32% of those who have faced an issue with repayment did so because they didn’t know a payment was due, highlighting the importance of comprehensive reminder systems. Contact customers proactively by sending payment reminders 48-72 hours before due dates and reaching out after failed payment attempts.
Best Practices for Complex BNPL Cases
Multi-Stakeholder Coordination
Resolving Complex BNPL Disputes with Collaboration Tools becomes essential when cases involve multiple parties. Ensure your finance, customer service, and technical teams can access the same information. Develop clear protocols for communicating with BNPL providers, including standardised information sharing processes and clear resolution timelines.
Technology Integration
Implement intelligent automation that can categorise BNPL queries by type and urgency, provide instant responses to common payment questions, and route complex cases to trained specialists. Ensure your customer service platform integrates with BNPL provider APIs for real-time payment status and order management systems for seamless return processing.
Building Customer Trust Through Excellent Support
BNPL customers often contact support during stressful financial situations. Train staff to acknowledge customer concerns without judgment, provide clear actionable solutions, and offer payment flexibility when appropriate. Ensure transparent communication about what information is needed, realistic resolution timelines, and next steps customers can take independently.
Looking Forward
As the BNPL sector matures and regulations approach by early 2026, customer service standards must evolve. Businesses investing in comprehensive BNPL support strategies now will be better positioned to meet upcoming regulatory requirements, maintain customer satisfaction, and build lasting relationships with the growing BNPL customer base.
Best Practices for BNPL Customer Support require a holistic approach combining technology, training, and genuine commitment to customer welfare. By implementing comprehensive strategies, businesses can turn potential service challenges into opportunities for building stronger customer relationships and sustainable competitive advantages.
Ready to streamline your BNPL customer support? Try eDesk for free today and transform how you manage complex BNPL queries and payment disputes.
