Buy Now Pay Later (BNPL) borrowers will benefit from key protections in place for other types of lending, under proposals put forward by the UK Financial Conduct Authority (FCA).

The proposals include requiring lenders to check that people can afford to repay BNPL loans and to offer support if they get into financial difficulty.

They form part of the FCA’s commitment to helping consumers navigate their financial lives. BNPL borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong.

The rules would take effect when BNPL comes under the FCA’s remit in 2026.

FCA’s research on unregulated BNPL found 1-in-5 (20%) UK adults (10.9 million) had used it at least once in the 12 months to May 2024, up from 17% (8.8 million) in 2022.

BNPL can provide benefits for consumers by giving them access to affordable credit and offers a convenient way to spread payment for goods and services. But, as with other credit products, there are also risks and potential for harm.

There will be a temporary permissions regime in place. This means firms will need to follow FCA rules and will be able to continue to trade before they’re fully authorised. The temporary permissions regime will be open for firms to register 2 months before the regime comes into force on 15 July 2026. Firms will then have 6 months (from the date the regime comes into force) to apply for full authorisation.

The FCA welcomes views from BNPL lenders, consumer groups, the wider industry and other interested parties on its proposals to help shape the final rules.

The consultation is open for feedback until 26 September 2025.