Consumer Finance Trends in 2026: What to Expect

Consumer Finance Trends in 2026: What to Expect

As UK merchants gear up for 2026, it’s important to anticipate consumer expectations and behaviour.

The latest KPMG Consumer Pulse survey reveals a mix of personal financial stability and economic caution that's shaping spending habits.

Read on to explore key insights and discover how offering consumer finance can help your customers afford both the things they want (like jewellery or a new bike) and need (like healthcare or car parts).

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Financial Security

56% of UK consumers feel secure in their personal finances (compared to 57% at the start of 2025) .

This stability means many are open to medium-to-high value purchases, but they’re selective.

Conversely, 20% feel neither secure or insecure (down slightly from 21%) and 22% feel insecure (up slightly from 21%).

Start by offering  0% finance, allowing consumers to commit to purchases without any added costs.

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Rising Economic Pessimism

Despite feeling personally secure, broader economic worries are influencing spending.

58% believe the UK economy is worsening. This is up sharply from 43% in Q1 2025.

By offering consumer finance, merchants can encourage spending by making non-essential purchases (like jewellery) feel attainable and unplanned purchases (like car parts) feel like less of a burden.

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Impact on Discretionary Spending

Many consumers are planning on spending the same or less on discretionary purchases in 2026 compared to 2025.  

47%: Spend around the same

27%: Spend less

13%: Spend more

13%: Unsure

By spreading costs over longer terms, merchants can offer lower monthly repayments to improve affordability.

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High-Value Purchases

42% of UK consumers plan no big-ticket purchases in Q1 2026.

Among those who believe the economy is worsening, 34% are actively deferring big-ticket buys due to economic concerns.

This hesitation hits medium-to-high value sales hardest, which is exactly where consumer finance shines.

Despite overall caution, some sections should expect to see demand as 10% of consumers plan to spend on major home improvements and 10% on furniture in Q1.

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Ready for 2026?

Don’t let pessimism ruin your 2026 before it even gets started!

The cautious UK landscape can be your opportunity to empower your customers to make smart financial decisions and get the things they want and need.

FinMatch is here to help from introducing the right lender, to FCA authorisation, to marketing finance on your site.

Ready to supercharge your sales in 2026?

Contact us to get started!