Millions of shoppers are set to enjoy greater rights and protections from Wednesday as new rules for “buy now, pay later” (BNPL) credit come into effect across the UK. The government said it was delivering on its commitment to end what it described as the BNPL “wild west”.
Under the new regime, this form of credit will be regulated by the City watchdog, the Financial Conduct Authority (FCA). The Treasury said the move would deliver a “fairer deal” for shoppers, who are increasingly confronted with BNPL offers at online checkouts.
The changes mean that BNPL products will now be subject to financial regulation, offering consumers a level of protection that was previously absent. The Treasury’s announcement marks a significant shift in the oversight of a payment method that has become widespread across e-commerce.
However, some campaigners have cautioned that despite the new safeguards, shoppers should still think carefully before succumbing to the temptation of clicking the BNPL button at checkout. The new rules aim to address concerns about the rapid growth of the sector, but the advice remains for consumers to consider their options before taking on credit.
