Regulating the Buy Now, Pay Later Industry in the UK
The UK’s Financial Conduct Authority (FCA) recently announced new rules on Buy Now, Pay Later (BNPL) regulation, coming into effect from 15 July 2026. This move is aimed at strengthening protections for consumers, including implementing affordability checks and granting access to the financial ombudsman. The general consensus among industry observers is supportive of the FCA’s plans.
Industry Reactions to New BNPL Regulations
Kristaps Zips, UK CEO, payabl.
Kristaps Zips, UK CEO of Payabl, views the FCA’s announcement as a welcome development. He believes that the new protections for BNPL, which bring it within the scope of the Consumer Duty, will strengthen protections for consumers. Zips highlights that BNPL has seen a surge in popularity as a payment method in recent years. It supports business growth and offers consumers greater flexibility to spread the cost of larger purchases. However, the key to this usage growth is to ensure that consumers clearly understand these products and the potential consequences of missed payments. He further points to the crucial role of assessing creditworthiness swiftly, which is a necessary step for firms ahead of the new rules coming into force in July.
Hyder Jumabhoy, Partner and Global Co-head of the Financial Institutions Industry Group at White & Case LLP
Hyder Jumabhoy, Partner and Global Co-head of the Financial Institutions Industry Group at White & Case LLP, sees the formal extension of FCA regulation to the BNPL market as a significant moment for the consumer finance sector. However, he also notes that this shift introduces a more complex and costly operating environment, with firms needing to invest in credit risk processes, compliance infrastructure, and customer communication machinery.
Alexander Berrai, Deputy CEO, emerchantpay
Alexander Berrai, Deputy CEO of emerchantpay, regards the FCA’s decision to regulate BNPL as a necessary step for a sector that has become part of everyday payments. He believes that clearer rules around credit assessments should increase confidence among the financial institutions supporting BNPL, reducing risk and improving stability across the wider ecosystem.
Sam Riordan, Executive Director of Banking & Payments, Capco
Sam Riordan, Executive Director of Banking & Payments at Capco, thinks that the regulation of BNPL is a long overdue next step in strengthening consumer protection for a solution that has become hugely popular with UK shoppers. He emphasizes the focus for firms should now be on proportionality, improving consumer protection without jeopardizing the customer experience and flexibility that have driven BNPL’s growth.
Alastair Douglas, TotallyMoney CEO
Alastair Douglas, TotallyMoney CEO, feels that regulating BNPL is a positive step, but one that is long overdue. He warns that up to a third of current BNPL users could lose access once the new rules kick in, indicating that many people have been borrowing without proper safeguards. He advises borrowers to only take on what they need and that they’ll be able to keep up with repayments.
Scott Dawson, CEO of DECTA
Scott Dawson, CEO of DECTA, sees the FCA’s emphasis on transparency and affordability in its updated framework for BNPL as a constructive step for the payments ecosystem. He believes that clear rules that reinforce responsible lending and consumer understanding will be critical to sustaining trust and long-term adoption.
Unnamed Clearpay Spokesperson
An unnamed spokesperson for Clearpay expressed support for the FCA’s announcement, stating that the new rules will establish a consistent operating environment and clear compliance standards for all providers. The spokesperson also noted that Clearpay’s research highlights that nearly half of UK adults are more likely to use BNPL once it is regulated, and with 71% believing that it is important for BNPL to be subject to UK financial legislation, regulation will help foster trust among consumers.
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