The Financial Conduct Authority (FCA) has published a new policy statement, PS26/1, titled 'Regulation of Deferred Payment Credit (unregulated Buy Now Pay Later)'. This move signals the UK regulator's intent to bring the rapidly growing but currently unregulated Buy Now, Pay Later (BNPL) credit sector under its formal oversight framework.
The policy statement, dated February 11, 2026, outlines the FCA's proposed regulatory approach for these deferred payment products. While the specific details of the new rules are not fully disclosed in the provided sources, the publication of a formal policy statement is a significant step in a regulatory process that typically involves consultation, feedback, and final rulemaking. The core aim is to extend consumer credit protections to BNPL agreements, which have largely operated outside traditional financial services regulation.
This regulatory action is part of a broader global trend where financial watchdogs are scrutinizing fintech credit products to ensure fair treatment of consumers, prevent excessive debt, and mandate clearer disclosures of terms and risks.
