- Starting 15th July 2026, Buy Now Pay Later schemes are subject to FCA regulation.
- Leading accountancy firm Price Bailey, warns that businesses should evaluate the implications of these new rules, as stricter customer verification and compliance demands could extend checkout times and raise expenses.
As of 15th July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority. Price Bailey is urging companies that offer or depend on BNPL to assess how this new framework might alter their payment procedures and customer journeys.
This regulatory regime marks the first time the FCA has brought Deferred Payment Credit under its oversight. It applies to interest-free credit repaid in up to twelve instalments within twelve months or less. Third-party lending providers must also obtain FCA authorisation or secure temporary permissions.
Although the rules primarily target BNPL providers, businesses that offer Buy Now Pay Later via third-party lenders may also notice practical changes. Extra customer checks and compliance obligations could lengthen the checkout process and raise providers’ compliance costs, potentially creating knock-on effects for merchants that rely on BNPL as a payment option.
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, around 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 conduct proportionate affordability checks, including on purchases below £50.
Adam Norman, Audit Partner and retail specialist at Price Bailey, comments: “BNPL has expanded rapidly, yet many businesses still view it as a simple payment option rather than a regulated credit product — and that assumption is now far riskier. Some companies will need to carefully examine whether their arrangements bring them into scope, particularly if they offer payment plans directly.”
Price Bailey recommends that businesses offering deferred payment options or relying on third-party Buy Now Pay Later providers review their current arrangements promptly, and seek advice if there is uncertainty about whether the new FCA regime affects their operations or creates additional compliance obligations.
For further information, visit the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom
