- From 15th July 2026, Buy Now Pay Later schemes are subject to FCA regulation
- Leading accountancy firm Price Bailey, warns that stricter customer checks and compliance demands could extend checkout times and raise costs, prompting businesses to evaluate the new rules’ implications.
As of 15th July 2026, Buy Now Pay Later products are now fully under Financial Conduct Authority oversight. Price Bailey is urging companies that provide or depend on BNPL to examine how the new framework might alter their payment flows and customer interactions.
This regulatory framework represents the first time the FCA has included Deferred Payment Credit within its scope. It applies to interest-free credit repaid in 12 or fewer installments over a period of 12 months or less. Third-party lending providers must secure FCA authorisation or hold temporary permissions.
Although the regulations mainly target BNPL providers, businesses that offer BNPL through third-party lenders may also encounter operational shifts. Additional customer due diligence and regulatory obligations could prolong checkout processes and drive up provider compliance expenses, with possible downstream effects for merchants who rely on BNPL as a payment method.
The new rules represent a major change for a market that has grown swiftly, from £60 million in transaction value in 2017 to over £13 billion in 2024. The FCA estimates that roughly 11 million UK consumers now use BNPL products. Starting 15 July, customers will also have access to the Financial Ombudsman Service, and providers must perform proportional affordability checks—including on purchases under £50.
Adam Norman, Audit Partner and retail specialist at Price Bailey, stated: “BNPL has expanded rapidly, but many businesses still view it as a straightforward payment tool rather than a regulated credit product, and that assumption is now far more dangerous. Some firms will need to scrutinise whether their practices bring them within the regulatory perimeter, especially if they offer direct payment plans.”
Price Bailey recommends that businesses offering deferred payment options or relying on third-party BNPL providers review their current arrangements without delay, and seek guidance where there is doubt about whether the new FCA regime applies to their operations or creates extra compliance responsibilities.
Additional details can be found on the Price Bailey website.
Price Bailey
Eleanor Lodge
eleanor.lodge@pricebailey.co.uk
London
United Kingdom
