Clifford Chance

A new UK regulated world for buy-now, pay-later (BNPL) products

20 May 2025

HM Treasury lays UK legislation to regulate BNPL lending with regime to be in place by mid-2026.

Treasury has laid before Parliament The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025 (final Order) to bring interest-free Buy-Now, Pay-Later (BNPL) agreements into UK regulation. From around mid-2026, BNPL lenders will require authorisation by the Financial Conduct Authority (FCA) unless there is an available exemption. BNPL agreements will also be subject to a tailored application of the Consumer Credit Act 1974 (CCA), on the reform of which HM Treasury has also begun a phased consultation. Lenders will need to comply with new FCA rules which will be consulted on soon.

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