New protections aimed at people using buy now pay later (BNPL) credit products have been confirmed by UK financial regulators.
The Financial Conduct Authority (FCA) confirmed on Wednesday that from 15 July 2026 BNPL will be subject to the Consumer Duty, which will regulate it in line with other loan products.
After the deadline, BNPL providers will be obligated to give consumers clear, upfront details about the agreement they are entering, including when payments will be due, payment amounts and consequences for missed payments.
Lenders offering these services will be legally required to carry out “proportionate” affordability checks, offer support to customers facing financial difficulty including free debt advice and in cases where things go wrong, consumers will be able to complain to the Financial Ombudsman Service.
“We want the Buy Now Pay Later sector to thrive – it provides an important source of credit to many – and we will continue to support firms who want to develop innovative new products,” said Sarah Pritchard, deputy chief executive at the FCA.
“But crucially, no one should be lent to if they’re unable to repay because that could worsen their financial situation. Now parliament has given us the powers, we’re putting in place proportionate protections for the 11 million people who use it.”
Firms looking to offer BNPL services will be required to be authorised by the FCA.
Responding to the FCA’s confirmation, a spokesperson for BNPL provider Clearpay told UKTN: “We welcome regulation, which will establish a consistent operating environment and clear compliance standards for all providers.
“Clearpay has always called for fit-for-purpose regulation that ensures consumer protection, provides much-needed innovation in consumer credit and supports the UK’s thriving fintech sector.”
