Buy Now, Pay Later regulation marks a step forward for consumer protections, says StepChange

^{18 July 2025}

Following years of campaigning from StepChange Debt Charity and other charities and civil society organisations, the FCA has confirmed Buy Now, Pay Later (BNPL) products will come under proper regulation by July 2026, bringing BNPL into line with the rest of the consumer credit sector.

Reacting to the news, Vikki Brownridge, CEO of StepChange Debt Charity, said:

"It’s incredibly reassuring to see the FCA’s consultation on its proposed approach to regulating Buy Now, Pay Later. This marks a significant step forward in what has long been a key campaign for StepChange Debt Charity to support our clients from problem debt. Whilst BNPL can be a useful budgeting tool, it can deepen debt problems, and it is important struggling consumers are afforded the same level of protection as for other forms of credit.

"Bringing BNPL firms in line with the wider credit market, when regulation begins next year, will provide an added layer of protections for consumers, a much needed change as StepChange polling found that BNPL users are twice as likely as all credit users to borrow to cover essential bills, and our research also found that BNPL is now as common as using an overdraft amongst UK adults."

Notes to Editors

Buy Now, Pay Later products won’t be regulated until July 2026, here are some tips for consumers for managing BNPL products and avoiding debt in the interim:

1. Pause at the checkout, and ask yourself “if I wasn’t using credit, would I buy this?” Most retailers offer BNPL as a way to increase sales. Taking that moment is essential, and your bank account will thank you for it.
2. Make sure you know which type of service you’re using, and what the consequences of missing a payment are. Different buy now, pay later services have different terms and conditions and different consequences if you don’t pay, so it’s not always clear what sort of an agreement you might be entering into. Do your research and always make sure that if you’re taking out credit it’s an informed choice.
3. Make sure you’re certain you’ll have the money to pay it back at the end of the month. Life is unpredictable, in fact the majority of StepChange clients who find themselves in difficulties with credit end up in that situation because of an unpredictable life event. If you aren’t in a position to say for certain whether your income will cover the product at the end of the month, then these sorts of products could cause you more trouble than they’re worth.
4. If you do start to struggle, get advice right away. If you reach the end of the month and find you are struggling to afford your debts, then you may benefit from free debt advice. Charities such as StepChange offer free advice no matter what your situation, and will be able to help you see the right path.

All figures, unless otherwise stated, are from YouGov Plc.

• For statistics on overdrafts and BNPL, the fieldwork was undertaken between 1st - 2nd July 2024, and the total sample size was 2,082. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
• For statistics on use of credit for essential bills, fieldwork was undertaken between 20th - 24th October 2021, and the total sample size was 5,028 adults. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)