- Starting 15th July 2026, “Buy Now Pay Later” schemes fall under FCA oversight.
- Leading accountancy firm Price Bailey urges businesses to examine how these new rules will affect them, noting that stricter customer checks and compliance duties could slow down checkout processes and raise costs.
As of 15 July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority. Price Bailey is calling on any business that offers or depends on Buy Now Pay Later to assess how this new framework might influence their payment procedures and customer experience.
This regulatory framework marks the first time the FCA has brought Deferred Payment Credit under its remit. It applies to interest‑free credit that is repaid in 12 or fewer instalments over 12 months or less. Third‑party lending providers must also secure FCA authorisation or temporary permissions.
Although the rules primarily target Buy Now Pay Later providers, merchants that offer the option through third‑party lenders may experience operational shifts. Additional customer checks and regulatory demands could lengthen checkout times and raise compliance costs for providers, with possible knock‑on effects for businesses that use Buy Now Pay Later as a payment method.
These changes represent a major shift 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, about 11 million UK consumers now use Buy Now Pay Later products. From 15 July, customers will also gain access to the Financial Ombudsman Service, and providers must perform proportionate affordability checks, including on 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 advises any business that offers deferred payment options, or relies on third‑party Buy Now Pay Later providers, to review their arrangements now. They also recommend seeking advice if there is uncertainty about whether the new FCA regime affects their operations or creates extra compliance duties.
Find more information on the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom
