- Buy Now Pay Later schemes are now subject to FCA Regulation effective from 15th July 2026
- Leading accountancy firm Price Bailey urges businesses to assess the impact of the new rules, warning that stricter customer checks and compliance demands could lengthen checkout times 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 encouraging companies that provide or depend on BNPL to examine how the new framework could affect their payment systems and customer experience.
This regulatory framework represents the first time the FCA has brought Deferred Payment Credit under its oversight. It applies to interest-free credit repaid in up to 12 instalments over a maximum of 12 months. Third-party lending providers must also obtain FCA authorisation or hold temporary permissions.
Although the regulations mainly target BNPL providers, companies that offer BNPL through third-party lenders may also experience operational shifts. Extra customer vetting and regulatory mandates could extend checkout times and raise compliance expenses for providers, potentially creating downstream consequences for merchants who rely on BNPL as a payment option.
These changes mark a major transformation for a market that expanded rapidly from £60 million in transaction value in 2017 to more than £13 billion in 2024. According to the FCA, around 11 million UK consumers now use BNPL products. From 15 July, customers will also gain access to the Financial Ombudsman Service, and providers must perform proportional affordability checks, including for purchases under £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 recommends that businesses offering deferred payment options or relying on third-party BNPL providers review their arrangements now, and seek advice where there is uncertainty over whether the new FCA regime affects their business or creates additional compliance obligations.
Find more information on the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom
