Is buy now pay later regulated in 2026?
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In short: Yes — BNPL firms such as Klarna and Clearpay moved under FCA authorisation from 1 May 2026, requiring affordability checks, clearer pre-contract information and Consumer Duty compliance.
Content updated:
Previously most BNPL sat outside FCA consumer-credit rules. New legislation brings BNPL into the same perimeter as other consumer credit for UK users.
Providers must assess affordability before lending and give clearer information on charges and consequences of missed payments. Missed payments can still affect credit files.
BNPL is convenient for budgeting but easy to stack multiple plans. Treat it as debt, not free money.
Primary source: legislation.gov.uk/ukpga/1974/39
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