How will Buy Now Pay Later changes affect you?
New regulations in the UK now require Buy Now Pay Later (BNPL) providers to obtain financial regulator approval and perform stricter affordability checks. While proponents argue this increases consumer protection, critics fear it may push vulnerable individuals toward unregulated loan sharks.
Why it matters
This shift marks a significant change in consumer credit regulation, impacting how millions of shoppers access interest-free installment plans.
Share Save Add as preferred on Google Kevin Peachey Cost of living correspondent Getty Images Shoppers using Buy Now Pay Later (BNPL) services have stronger rights but some will be refused loans, as new rules come into effect.
From Wednesday, BNPL lenders must have regulator approval to operate, giving shoppers more access to refunds and independent rulings on unresolved complaints if things go wrong.
Providers such as Klarna and Clearpay have become huge operators allowing consumers to pay in interest-free instalments, but campaigners have often described the wider sector as an unregulated Wild West.
There are fears that new affordability checks on each BNPL transaction will leave some blocked for the first time, pushing them towards "thrilled" loan sharks instead.
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