U.K. ‘buy now pay later’ regulation signals end of ‘Wild West’ fintech loans system
By 
Ruth Prickett2026-02-26T21:47:00
Firms offering “buy now, pay later” (BNPL) financing will become part of the regulated financial services sector in the U.K. from July 15. Compliance teams must act now to ensure they are ready to introduce rules, including Consumer Duty, and establish creditworthiness assessment processes, adapt systems, and change data processes before the deadline.
Affected businesses will include BNLP providers such as Klarna, Zilch and Clearpay, as well as the major retailers that offer customers the chance to pay via these firms’ products – including Amazon, major airlines, Nike and eBay. The U.K.’s Financial Conduct Authority (FCA) said that the BNPL market (also known as Deferred Payment Credit) was worth over £13bn in 2024 and over 10.9 million U.K. adults used it in the 12 months up to May 2024.
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