Buy now pay later is now a different compliance proposition in the UK. The Financial Conduct Authority began regulating eligible Deferred Payment Credit agreements on 15 July 2026. Its guidance says lenders entering these agreements need relevant authorisation or temporary permission and must comply with its rules. [1]

The scope is specific. The FCA identifies agreements provided by third-party lenders and lists exclusions; agreements entered into before regulation day remain exempt. Merchants should therefore avoid treating every instalment arrangement as subject to identical rules.

For a checkout team, the immediate task is to identify the lender and establish which product and permissions apply. Customers need an understandable repayment schedule and a clear route for questions or complaints. Businesses should also review the wording used to present instalments so that borrowing is easy to recognise. A short payment journey should still give people enough information to understand what they are agreeing to. Providers serving several countries need to check each market separately, since the UK’s change does not establish a global BNPL rulebook.