The UK’s FCA will regulate Buy Now Pay Later services under full consumer credit rules from July 2026. This follows a government directive to oversee BNPL sector expansion. Firms must now provide clear repayment terms and conduct affordability checks. Customers in financial hardship will receive support and access to the Financial Ombudsman Service for complaints.

FCA deputy chief executive Sarah Pritchard emphasized responsible lending practices to protect consumers. The UK aims to support innovation in the BNPL sector while ensuring borrowers can repay. Parliament granted powers to implement safeguards for the 11 million users of these services. The FCA will provide guidance to firms seeking authorization for BNPL products.

The US Consumer Financial Protection Bureau classified BNPL providers as credit card issuers last year. Regulatory approaches to BNPL services vary internationally. The UK’s move to bring BNPL services under full consumer credit regulation aims to protect consumers and ensure responsible lending practices.

Read more at Yahoo Finance: UK regulator brings BNPL services under full consumer credit regulation