The UK government has announced that new regulations for 'buy now, pay later' (BNPL) credit will come into force in July 2026, bringing the sector under the oversight of the Financial Conduct Authority (FCA). The Treasury says the move will deliver a 'fairer deal' for shoppers, fulfilling a commitment to end the BNPL 'wild west'.
Under the new rules, millions of consumers will gain stronger rights and protections when using BNPL services at online checkouts. The FCA will regulate these products, ensuring lenders meet standards on affordability checks, clear information, and fair treatment of customers in financial difficulty.
The Treasury emphasised that the reforms aim to balance innovation with consumer safety. However, some campaigners have warned that despite the new safeguards, shoppers should still think carefully before opting for BNPL, as the ease of use can lead to debt accumulation.
The regulations were originally set to take effect earlier, but the government confirmed the July 2026 start date to allow businesses time to prepare for compliance.
