Buy Now, Pay Later Comes Under Full FCA Regulation in the UK from July 15

Buy Now, Pay Later credit, which the UK's Financial Conduct Authority calls Deferred Payment Credit, comes fully within the regulator's remit from July 15, marking a significant expansion of consumer protection in the fast-growing sector. From that date, banks, fintechs and retailers offering interest-free instalment or deferred-payment credit must comply with mainstream consumer credit standards, including assessing whether borrowers can afford the repayments, providing clear pre-contract disclosures, and giving customers access to the Financial Ombudsman Service if disputes arise. The FCA has said it will review firms' applications for full authorisation while running a temporary regime for existing operators that currently lack the necessary permissions, an approach designed to keep the product widely available while raising standards. The move is part of the regulator's broader annual work programme and its multi-year strategy to help consumers withstand financial shocks and engage more confidently with financial services. Buy Now, Pay Later has expanded rapidly in recent years, much of it outside formal credit regulation, prompting concern that some users take on unaffordable debt without realising it. The FCA has framed stronger protections as the right step for consumers, while stressing a proportionate approach so the product remains accessible.