The Financial Conduct Authority start regulating Deferred Payment Credit (DPC), often known as Buy Now Pay Later

James O’Donnell, director of research and consulting at TransUnion comments on buy now, pay later (BNPL) falling under FCA regulation.

“BNPL coming under FCA regulation is a welcome step in the long journey to bring the industry into alignment with broader consumer protections already in-place across other credit products. It is undoubtedly a positive development that will benefit consumers.

“In many respects, consumers are already reaping the benefits of these changes, with BNPL leaders having pre-emptively introduced many of the protections into their processes well in advance of the regulation coming into effect.

“We were particularly pleased to see clearer obligations for BNPL lenders to establish that consumers can afford the credit they’re seeking. This has proven to be a crucial protection, with TransUnion research showing that 42% of consumers saying affordability checks would make them feel safer when using BNPL products. Many consumers report that they already take a cautious approach and over two thirds (67%) carefully consider affordability before taking out a BNPL agreement. However, nearly one in five (18%) simply assume that they can manage it later. 

“We’re also pleased to see greater transparency around the credit product obligations the consumer is entering into – and the expansion of support mechanisms for consumers when difficulties arise. Of those support mechanisms, perhaps the most important is the greater recourse for independent escalation for complaints via the Financial Ombudsman Service (FOS).”

Notes:

Unless otherwise stated, all figures are from TransUnion’s Affordability study, based on a survey of 2,000 adults in the UK. The survey was conducted between 16-19 June 2026 by TransUnion in partnership with third party research provider, OnePoll.