From 15 July 2026, buy now, pay later (BNPL) products will come under FCA regulation for the first time. The FCA confirmed the framework in early 2026. If you use BNPL at the checkout, or are thinking about it, here is what has been confirmed, what is still uncertain, and what you may want to check before the rules take effect.
What has changed?
Until now, most BNPL products sat outside the scope of the Financial Services and Markets Act. That meant shoppers using services like deferred payment plans at online checkouts had fewer formal protections than people using a credit card or a personal loan.
From 15 July 2026, BNPL agreements offered by firms will need to be authorised by the FCA. That brings them into the same regulatory perimeter as other regulated credit products.
At the time of writing, the FCA's published position confirms that:
- BNPL lenders will need FCA authorisation to continue offering products to UK consumers.
- Firms will need to carry out affordability assessments before lending.
- Customers will gain access to formal complaint routes, including the Financial Ombudsman Service.
- Pre-contract information requirements will apply, meaning lenders must set out key terms clearly before a customer agrees to a plan.
The FCA's published page on regulating buy now, pay later is the primary source for confirmed details.
Why it matters
BNPL has grown quickly as a way to spread the cost of purchases, often with no interest charged upfront. That low barrier to entry is also what makes it easy to build up multiple plans without a full picture of what you owe.
The new rules are intended to change that. Affordability checks should mean lenders consider whether a customer can reasonably repay before approving a plan. Clearer pre-contract information should make it easier to see what happens if a payment is missed.
Importantly, regulated status means customers will have a formal route to complain if something goes wrong, through the lender first, then to the Financial Ombudsman Service if needed. That route did not exist for most BNPL products before.
Who may be affected
These changes are most relevant if you:
- currently use BNPL regularly across more than one provider
- have missed a BNPL payment, or think you might
- are comparing the cost of BNPL against a credit card or a personal loan
- are new to borrowing and have used BNPL as a first credit product
The rules apply to firms operating in the UK consumer market. If you use BNPL through an overseas retailer, the position at the time of writing is less clear. You may want to check directly with the provider whether they will be FCA-authorised from July 2026.
What you may want to check
What you already owe across BNPL plans. Before July, it can help to list all open plans, the amounts outstanding, and the due dates. BNPL balances often do not appear on your credit file yet, so you may need to log in to each provider separately.
Whether the product you use will be regulated. Not all BNPL-style products are structured identically. Some three- or four-payment instalment plans and some merchant-arranged deferred payments may fall under different rules. At the time of writing, the FCA's consultation documents set out which product types are in scope. A useful first step is checking the FCA's own page for your provider.
How missed payments are handled under the new rules. Regulated products must follow FCA rules on arrears handling and default notices. If you are already behind on a BNPL plan, it may be worth contacting the provider now to understand the current process before the new regime begins.
How BNPL fits alongside other borrowing. If you use BNPL alongside a credit card, overdraft, or personal loan, it is worth reviewing the total picture. The affordability checklist tool below can help.
Important caveats
This article reflects what was publicly confirmed by the FCA at the time of writing in May 2026. The detail of the rules, including how specific product types are classified, and which firms have gained authorisation by 15 July, may change before or after that date.
The FCA's published page on regulating buy now, pay later is the authoritative source. Always check there for the current position.
This article does not constitute financial advice. If you are worried about BNPL debt or borrowing more broadly, free and confidential help is available:
- StepChange Debt Charity: 0800 138 1111
- National Debtline: 0808 808 4000
- MoneyHelper: 0800 138 7777
Related guides
For the longer background on how credit products compare, these guides may be useful:
You can also read the buy now, pay later glossary entry for a plain-English explanation of how these products work.