Government confirms buy now, pay later to be regulated

The government has confirmed buy now, pay later (BNPL) will be regulated from 2026. This will mean:

• customers must be made aware that BNPL is a form of debt
• providers will need to carry out proper affordability checks
• if things go wrong, people can get help from the ombudsman

Here are our thoughts...

“We welcome the government’s action to regulate the BNPL sector. 

"The introduction of thorough affordability checks and essential consumer protections is a critical step that’s long overdue.

"Over the past year, we’ve witnessed a threefold rise in individuals seeking help with overwhelming BNPL debts, many of whom are vulnerable.

"We urge BNPL providers to collaborate swiftly with the FCA to implement these changes, ideally ahead of the proposed 2026 timeline.”

(Sebrina McCullough, director of external affairs)