Thousands of British shoppers are hitting a frustrating roadblock at online checkouts as major retailers suddenly restrict access to popular 'Buy Now, Pay Later' (BNPL) services.
Customers attempting to use payment options like Klarna and Clearpay report being unexpectedly declined, despite having used these services successfully in the past. The rejections come as financial providers implement stricter affordability checks.
Why the sudden clampdown?
Financial experts suggest lenders are becoming increasingly cautious about consumer debt levels amid the cost-of-living crisis. New regulations expected in 2024 will require BNPL providers to conduct proper credit checks - a move that's already being anticipated in the sector.
One shopper told us: 'I've used Clearpay for years without issue, but suddenly I'm being declined for a £50 purchase. It makes no sense when I've always paid on time.'
Which retailers are affected?
While no major chains have officially announced policy changes, reports suggest these issues are occurring across multiple fashion and electronics retailers. The problems appear most prevalent when customers attempt to:
- Make larger purchases
- Use BNPL for the first time with a retailer
- Have multiple active BNPL agreements
What this means for shoppers
The Financial Conduct Authority has warned that BNPL usage has doubled since 2020, with many consumers not treating it as 'real debt'. These new restrictions may force shoppers to:
- Reconsider impulse purchases
- Explore alternative payment methods
- Improve their overall credit score
Industry analysts predict this trend will continue as the government moves to regulate BNPL products more like traditional credit agreements. For now, frustrated shoppers are advised to check their eligibility directly with providers before filling their baskets.
