- From 15th July 2026, Buy Now Pay Later schemes are brought under FCA regulation
- Leading accountancy firm Price Bailey, warns that stricter customer checks and compliance demands could extend checkout times and raise expenses, urging businesses to evaluate the impact of the new rules.
As of 15 July 2026, Buy Now Pay Later products are fully regulated by the Financial Conduct Authority. Price Bailey is calling on companies that offer or depend on BNPL to assess how the new framework might alter their payment systems and customer journeys.
This regulatory move marks the first time the FCA has extended its oversight to Deferred Payment Credit. It covers interest-free credit repaid in twelve or fewer instalments over a period of twelve months or less, and third-party lending providers must secure FCA authorisation or hold temporary permissions.
Although the regulations chiefly affect BNPL providers, businesses that offer BNPL via third-party lenders may also face practical changes. Additional customer checks and new compliance obligations could slow down checkout processes and increase costs for providers, potentially creating knock-on effects for merchants who rely on BNPL as a payment option.
The new rules represent a major shift for a market that has surged from £60 million in transaction value in 2017 to over £13 billion in 2024. The FCA estimates that roughly 11 million UK consumers currently use BNPL products. From 15 July, customers will also gain access to the Financial Ombudsman Service, and providers must carry out proportionate affordability checks, including on purchases below £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 recommends that companies offering deferred payment options or relying on third-party BNPL providers review their current setups without delay and seek advice if they are uncertain whether the new FCA regime applies to their operations or imposes additional compliance obligations.
Further details can be found on the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom