- Starting from 15th July 2026, Buy Now Pay Later schemes are now subject to FCA Regulation
- Leading accountancy firm Price Bailey, is urging businesses to evaluate the effects of the new regulations, as stricter customer checks and compliance demands threaten to slow down checkout processes and push up costs.
As of 15th July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority. Price Bailey is calling on businesses that offer or depend on Buy Now Pay Later to assess how the new framework might impact their payment processes and customer experience.
This regime represents the first time the FCA has brought Deferred Payment Credit under its oversight. It applies to interest-free credit that is repayable in 12 or fewer instalments over a period of 12 months or less. Third-party lending providers will also require FCA authorisation or temporary permissions.
Although the rules primarily target Buy Now Pay Later providers, businesses that make Buy Now Pay Later available via third-party lenders may also see practical shifts. Additional customer checks and compliance obligations could lengthen checkout procedures and raise compliance expenses for providers, potentially creating knock-on effects for merchants that rely on Buy Now Pay Later as a payment method.
These changes represent a major milestone for a market that has grown dramatically, from £60 million in transaction value in 2017 to more than £13 billion in 2024. According to the FCA, approximately 11 million UK consumers currently use Buy Now Pay Later products. From 15 July, customers will also be able to access the Financial Ombudsman Service, and providers must conduct 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 businesses that offer deferred payment options, or rely on third-party Buy Now Pay Later providers, to 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
