- From 15th July 2026, Buy Now Pay Later schemes will be subject to FCA oversight.
- According to leading accountancy firm Price Bailey, companies should assess how the new rules will affect them, as stricter customer checks and compliance demands threaten to extend checkout times and drive up costs.
As of 15th July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority, and Price Bailey is urging businesses that offer or depend on Buy Now Pay Later to evaluate how the new framework might impact their payment workflows and customer experience.
This is the first time the FCA has brought Deferred Payment Credit under its regulatory umbrella. The rules cover interest-free credit repayable in no more than 12 instalments over 12 months or less, and third-party lending providers must now hold FCA authorisation or have temporary permissions.
Although the regulations primarily target Buy Now Pay Later providers, companies that offer BNPL through third-party lenders may also see operational changes. Added customer checks and regulatory burdens could lengthen checkout processes and raise compliance expenses for providers, with possible knock-on effects for merchants that use BNPL as a payment method.
The new rules represent a major shift for a market that has grown quickly, rising from £60 million in transaction value in 2017 to over £13 billion in 2024. The FCA reports that around 11 million UK consumers now use BNPL products. From 15 July, customers will also have access to the Financial Ombudsman Service, and providers must perform proportionate affordability checks, including for 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
