- Starting 15 July 2026, Buy Now Pay Later schemes will be subject to FCA regulation.
- Leading accountancy firm Price Bailey urges businesses to assess the effects of the new rules, as stricter customer verification and compliance demands threaten to prolong checkout procedures and drive up costs.
As of 15 July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority. Price Bailey is calling on companies that provide or utilise BNPL to examine how the new framework could alter their payment processes and customer interactions.
This regime marks the first time the FCA has brought Deferred Payment Credit under its oversight. It applies to interest-free credit repayable in 12 or fewer instalments within 12 months or less, and third-party lending providers must now obtain FCA authorisation or hold temporary permissions.
Although the regulations chiefly target BNPL providers, businesses that offer BNPL via third-party lenders may also encounter practical shifts. Extra customer checks and regulatory obligations could lengthen checkout journeys and raise compliance costs for providers, potentially creating knock-on effects for merchants that depend on BNPL as a payment method.
The changes represent a major turning point for a market that has grown rapidly, from £60 million in transaction value in 2017 to over £13 billion in 2024. According to the FCA, roughly 11 million UK consumers now use BNPL products. From 15 July, customers will also gain access to the Financial Ombudsman Service, and providers will be required to conduct proportionate affordability checks, including on purchases below £50.
Adam Norman, Audit Partner and retail specialist at Price Bailey, comments: “BNPL has grown quickly, but many businesses still see it as a simple payment option rather than a regulated credit product and that assumption is now much riskier. Some businesses will need to look carefully at whether their arrangements bring them into scope, particularly where they offer payment plans directly.”
Price Bailey advises firms that offer deferred payment options or rely on third-party BNPL providers to review their current arrangements without delay, and to seek guidance if there is any uncertainty about whether the new FCA regime applies to their operations or creates additional compliance burdens.
Find more information on the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom
