The UK’s Financial Conduct Authority (FCA) has decided to bring Buy Now Pay Later (BNPL) services under full consumer credit regulation starting 15 July 2026.

The move follows a government directive to expand regulatory oversight of the BNPL sector.

In July last year, FCA revealed plans to regulate the industry.

With the change, BNPL agreements will fall within the scope of the Consumer Duty.

Consumers using these services are set to receive clearer information on repayment terms, including due dates, payment amounts, and the implications of missing payments.

Firms offering BNPL products will be required to conduct affordability checks before approving credit.

Lenders must also provide support to customers facing financial hardship and, where suitable, signpost them to free debt advice.

Regulatory changes will give consumers access to the Financial Ombudsman Service for complaints relating to BNPL providers. The FCA has stated that all firms wishing to offer BNPL products will need authorisation and can expect pre-application guidance as they prepare for compliance.

FCA deputy chief executive Sarah Pritchard said:  “We want the Buy Now Pay Later sector to thrive – it provides an important source of credit to many – and we will continue to support firms who want to develop innovative new products.

“But crucially, no one should be lent to if they’re unable to repay, because that could worsen their financial situation. Now Parliament has given us the powers, we’re putting in place proportionate protections for the 11 million people who use it.”

Internationally, regulatory approaches vary. Last year in the US, the Consumer Financial Protection Bureau that classified buy now, pay later providers as credit card issuers.