The UK’s Financial Conduct Authority (FCA) has confirmed that regulatory protections for buy now pay later (BNPL) customers will come into force on 15 July 2026.

After it becomes effective, BNPL arrangements will be brought within the scope of the Consumer Duty.

This will help ensure that consumers receive clear, upfront information on their agreements, including payment dates, amounts due and the consequences of missing payments.

Lenders will also be required to carry out proportionate affordability assessments before providing BNPL, to check that customers can reasonably repay what they borrow.

Under the new rules, providers must support customers who experience financial difficulty and, where appropriate, direct them to free debt advice services.

BNPL users will also gain the right to escalate unresolved issues to the Financial Ombudsman Service once the protections take effect.

The FCA highlighted that BNPL is an important source of credit for many people but that regular users currently lack specific regulatory safeguards, particularly where affordability is a concern.

The regulator said the measures are intended to help consumers manage their finances and ensure that appropriate support is available when problems arise.

Lenders will need FCA authorisation to offer BNPL. The FCA will provide pre-application support to help companies prepare.

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 are unable to repay because that could worsen their financial situation. Now Parliament has given us the powers, we are putting in place proportionate protections for the 11 million people who use it.”

Professional services operator Forvis Mazars has also commented on the FCA’s BNPL protections, referring to the segment as the deferred payment credit (DPC) market.

Forvis Mazars Banking & Capital Markets Advisory & Consulting director Christos Doumas said: “The FCA’s announcement is aimed at strengthening consumer protection in a rapidly expanding DPC market, now worth over £13bn [$17.73bn].

“By introducing more robust affordability and creditworthiness checks, clearer disclosures and consistent fair treatment standards, the regulator is seeking to address the risk of consumers taking on multiple agreements without adequate safeguards.

“With many users already in financial difficulty and more households facing pressure from inflation, slower growth and rising unemployment, it is essential that customers fully understand these products and receive appropriate support, particularly if they fall behind on payments.”