This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

Buy now, pay later (BNPL) is moving under formal FCA regulation on 15 July 2026. With the date approaching, here is a summary of what is confirmed and what it means for shoppers.

What is changing?

From 15 July 2026, most BNPL products offered at the point of sale in the UK will become regulated credit under the Financial Services and Markets Act. Providers will need FCA authorisation to offer these products.

The regulation covers third-party BNPL providers (such as Klarna, Clearpay and Laybuy) operating at the point of sale. Deferred payment products offered directly by a merchant using their own balance sheet may fall outside the scope of the new rules; it can help to check with your specific provider if you are unsure.

The main changes for consumers are:

  • Providers must carry out affordability checks before offering BNPL credit.
  • Shoppers will have clearer information about repayment terms before they agree.
  • Formal complaint routes will be available, including access to the Financial Ombudsman Service.
  • Whether BNPL borrowing appears on your credit file will depend on the individual provider and product; this is not confirmed as a universal requirement under the new rules.

Source: FCA Policy Statement PS24/4 Regulation of Buy-Now Pay-Later, published June 2024. Available at: https://www.fca.org.uk/publications/policy-statements/ps24-4-regulation-buy-now-pay-later

Why it matters

BNPL has grown significantly as a way to spread the cost of everyday purchases, from clothes to electronics. Until now, most BNPL products have sat outside the consumer credit rules that apply to credit cards and personal loans. Bringing them into scope means shoppers get the same baseline protections they would expect from other regulated credit.

The affordability check requirement is the most significant shift. Lenders will need to consider whether a borrower can afford repayments, rather than simply offering credit at checkout.

Who may be affected

  • Anyone who uses BNPL regularly at checkout, particularly for higher-value baskets.
  • Shoppers who use multiple BNPL arrangements at the same time, as combined balances may now be more visible.
  • People with existing BNPL balances who are unsure whether those agreements will fall under the new rules.

As a named example of how providers are responding: Klarna announced in 2024 that it would begin reporting BNPL lending data to UK credit reference agencies Experian and TransUnion ahead of the regulatory deadline, meaning some BNPL use may already be visible on credit files for customers of that provider.

If you use BNPL alongside other borrowing such as credit cards or an overdraft, it may be worth reviewing how the repayments fit alongside your other outgoings.

What to check before July 2026

  • Review any active BNPL agreements and note the repayment dates.
  • Check whether your BNPL provider has communicated any changes to terms ahead of the regulatory deadline.
  • If you are finding it hard to keep up with BNPL repayments, consider speaking to a free debt advice service before the rules change.

Free debt help is available from:

  • StepChange: 0800 138 1111
  • National Debtline: 0808 808 4000
  • MoneyHelper: 0800 138 7777

What to read next

For a fuller explanation of how BNPL works and what the regulation means in practice, see our guide: Buy now, pay later.

Sources

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