UK to Regulate BNPL by 2026, Mandating Affordability Checks and Refund Protections

The UK’s Financial Conduct Authority has proposed new rules for Buy Now, Pay Later providers that will take effect in 2026, requiring affordability checks, quicker refunds, and granting consumers the right to escalate complaints to the Financial Ombudsman. The measures are designed to curb rising consumer debt and bring greater oversight and accountability to a sector that has operated largely unregulated.