Glossary · Credit

BNPL (Buy Now Pay Later)

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Content updated: 26 May 2026

By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: Short-term interest-free credit that splits a purchase into instalments. Providers include Klarna, Clearpay and PayPal.

BNPL has historically been outside FCA regulation, but the government has confirmed full regulation is coming. The FCA's Consumer Duty already applies in practice. Missed payments can be reported to credit reference agencies and affect future borrowing.

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