Buy Now Pay Later has become a familiar way to spread the cost of purchases. For many people, it’s a straightforward option at checkout that helps manage cash flow over the short term.
As its use has increased, questions have been raised about how Buy Now Pay Later agreements are presented, how affordability is assessed, and how consistently consumers are protected. In response, new rules are being introduced later this year to bring Buy Now Pay Later products in line with other regulated forms of credit.
This guide explains what the new Buy Now Pay Later rules are expected to cover, how they may affect the way these services are offered, and what options are available if you want advice.
Table of contents
- What Is Buy Now Pay Later and Why the Rules Are Changing?
- When the New Buy Now Pay Later Rules Are Coming In?
- What the New Buy Now Pay Later Regulations Will Cover?
- How the Changes Could Affect How You Use Buy Now Pay Later
- Will Buy Now Pay Later Be Harder to Get?
- What the New Rules Mean if You Already Use Buy Now Pay Later
- How the Regulations Are Intended to Improve Consumer Protection
- Reviewing Buy Now Pay Later Agreements
- Where to Get Advice About Buy Now Pay Later
- Get Support with Buy Now Pay Later Debt
What Is Buy Now Pay Later and Why the Rules Are Changing?
If you’ve used Buy Now Pay Later before, you’ve probably encountered it at checkout rather than sought it out deliberately. It appears alongside card payments, offers to split the cost, and moves things along quickly.
That ease of use is part of its appeal. It’s also one of the reasons Buy Now Pay Later has grown faster than the rules around it. Compared with other forms of credit, expectations around checks, explanations, and protections have not always been consistent.
The upcoming changes are intended to close that gap. Rather than redefining Buy Now Pay Later itself, the rules focus on how these agreements are offered, explained, and managed.
When the New Buy Now Pay Later Rules Are Coming In?
The new Buy Now Pay Later rules are expected to come into force later this year, on 15th July 2026. Once they do, Buy Now Pay Later providers will fall under the oversight of the Financial Conduct Authority, bringing them into the same regulatory space as most other consumer credit products.
Instead of operating under a separate set of expectations, Buy Now Pay Later will now be governed by the same rules that apply to most other consumer credit.
What the New Buy Now Pay Later Regulations Will Cover?
The regulations focus less on how Buy Now Pay Later works day to day and more on the standards providers must meet.
Affordability checks are expected to become more consistent. This means providers will need to take a clearer view of whether repayments are likely to be manageable before approving an agreement.
The information shown before you agree to pay should also change. Payment schedules, total amounts repayable, and the consequences of missed payments are expected to be presented more clearly and more consistently.
Consumer protections form another part of the update. Complaints processes and rights around disputes should be easier to understand, with clearer routes for raising concerns if needed.
How the Changes Could Affect How You Use Buy Now Pay Later
In practical terms, Buy Now Pay Later is unlikely to feel completely different. You’ll still see it offered at checkout and you’ll still be able to spread payments over time.
What may change is the amount of information you’re shown before agreeing to pay, along with how approvals are assessed. These changes mostly take place behind the scenes, shaping how agreements are offered rather than how they’re used.
Some people may notice that approvals look different as providers apply the new standards.
Will Buy Now Pay Later Be Harder to Get?
In some situations, Buy Now Pay Later approvals may involve additional checks or take slightly longer than before. This reflects its move into a regulated framework rather than a shift in intent.
The purpose of the new rules is consistency. Bringing Buy Now Pay Later into line with other credit products means similar expectations around affordability and disclosure, rather than a blanket tightening of access.
What the New Rules Mean if You Already Use Buy Now Pay Later
Existing Buy Now Pay Later agreements will continue under their current terms. The new regulations focus on how Buy Now Pay Later is offered and regulated going forward.
Over time, you may notice clearer communication from providers or more detailed explanations around payments and options. The aim is to standardise how information is shared, rather than to change existing arrangements.
How the Regulations Are Intended to Improve Consumer Protection
The updated framework is intended to make Buy Now Pay Later easier to understand as a form of credit. Clearer information, consistent checks, and defined protections all contribute to a more predictable experience.
For many people, this simply means having a clearer picture of what they’re agreeing to and how Buy Now Pay Later fits alongside other financial commitments.
Reviewing Buy Now Pay Later Agreements
Some people choose to review their Buy Now Pay Later agreements occasionally, particularly if they want a clearer overview of upcoming payments.
Listing balances, payment dates, and other commitments can help bring everything into one place. Even a brief review can make it easier to see how different agreements line up across the month.
Where to Get Advice About Buy Now Pay Later
PennyPlan provides free, confidential debt advice for anyone who wants help understanding their options. That may involve Buy Now Pay Later agreements, or a wider look at personal finances.
Advice is always offered without judgement or pressure, and focuses on explaining choices clearly so you can decide what feels appropriate for you.
Get Support with Buy Now Pay Later Debt
Buy Now Pay Later agreements can be an easy option at first, but if you borrow more than you can afford to pay back or your circumstances unexpectedly change, things can quickly spiral.
Our specialist team helps people deal with BNPL debt like Clearpay, Klarna and PayPal. If you need support getting your finances back on track, talk to our team today.
