Buy Now, Pay Later (BNPL) has become a normal part of everyday spending. Whether it's spreading the cost of a new sofa, a pair of trainers or even a takeaway, millions of people now use BNPL services as part of their monthly budget.
But from the 15th of July 2026, the way BNPL works in the UK is changing.
New regulations will bring BNPL providers under the supervision of the Financial Conduct Authority (FCA), introducing affordability checks, stronger consumer protections and clearer rules around lending.
To understand how prepared consumers are for these changes, we surveyed 3,000 UK adults exploring awareness of the new rules, current borrowing habits and financial anxiety around credit and borrowing.
What are the new BNPL changes?
This July, Buy Now, Pay Later (BNPL) providers will start to fall under the supervision of the Financial Conduct Authority (FCA), bringing these products in line with many of the protections already associated with other forms of consumer credit.
The new rules are designed to strengthen consumer protections while helping lenders make more informed decisions about whether a product is affordable for each customer.
Some of the key changes include:
Mandatory affordability and creditworthiness checks before BNPL credit is approved.
Access to the Financial Ombudsman Service (FOS) if consumers have a complaint that cannot be resolved with their provider.
Clearer information about borrowing, helping shoppers better understand the terms of their agreement before committing.
Section 75 protection for eligible purchases, giving consumers stronger rights if goods or services are not provided as agreed.
For many shoppers, the checkout experience may look slightly different, with some applications requiring additional information before credit is approved.
While this may mean some shoppers face more checks, the changes are intended to promote responsible lending and provide stronger protections for those using BNPL products.
Section 75 protection under the new BNPL rules
One of the major benefits of the new BNPL regulations is that Section 75 of the Consumer Credit Act will apply to eligible purchases, providing shoppers with stronger refund rights if a merchant fails to deliver or goes bust.
However, according to our research, 43% of the population don’t know what Section 75 protection is. Furthermore, only 14% correctly identified that only some BNPL purchases will be protected under the new rules. Many people believe all purchases will automatically be covered.
Which BNPL Purchases Will Be Protected?
To help clarify the rules, we have mapped out common BNPL purchases against their future protection status post-July 15th. Note that Section 75 only triggers on a single item costing over £100 (up to £30,000).
Purchase category | % of consumers using BNPL | Average item cost | Current protection | Post-regulation protection |
Fashion, clothes, or shoes | 39% | £59.46 | None | Not Protected (Unless a single item is £100+) |
Furniture, home appliances, or travel | 32% | £462.40 | None | Protected (unless a single item is below £100) |
High-value electronics or gadgets | 32% | £304.30 | None | Protected (unless a single item is below £100) |
Beauty, cosmetics, or wellness | 20% | £17.08 | None | Not Protected (Unless a single item is £100+) |
Takeaway food, deliveries, or groceries | 19% | £10.65 | None | Not Protected (Unless a single item is £100+) |
What people know about the new BNPL changes
To understand how prepared consumers are for these changes, we surveyed 3,000 UK adults exploring awareness of the new rules, current borrowing habits and financial anxiety around credit and borrowing.
Key Findings
59% of the public are completely unaware of the upcoming July 15 regulations.
48% of the population currently use at least one BNPL provider, and 24% juggle two or more accounts.
10% of respondents have £0 or a negative balance after essential monthly outgoings, with the average disposable income sitting at £225.32 per month.
43% of people do not know what Section 75 purchase protection is.
Only 31% feel confident applying for traditional credit, such as credit cards or loans, with 14% deterred from applying for products entirely due to a fear of rejection.
Almost half of people use BNPL
Today, almost half (48%) of UK adults use at least one form of Buy Now Pay Later service. For many people, BNPL offers flexibility and convenience.
However, our findings suggest that some people may be using borrowing for everyday spending rather than occasional larger purchases:
10% of people use BNPL at least once a month for essential expenses such as groceries, household bills and other everyday costs.
1 in 6 (17%) of both 18-24s and 25-34s use BNPL for essential expenses
14% of people said that if they were declined BNPL at checkout, they would abandon their purchase completely
6 in 10 are unaware of new BNPL rules
Despite just under half of adults reporting that they use at least one BNPL product, awareness remains surprisingly low.
Our research found that almost 6 in 10 people (59%) were not aware of the upcoming BNPL regulations. Awareness is particularly low among older adults. Nearly three-quarters (73%) of those aged 55 and over say they are completely unaware of the new rules.
This suggests that many shoppers may encounter affordability checks for the first time when checking out with these products, without understanding why they are being asked for additional information.
How people feel about BNPL affordability checks
Our survey found that 14% of consumers avoid applying for credit products entirely because they worry about being turned down.
When asked what they would do if rejected for BNPL at checkout:
14% would abandon their purchase completely
19% would use existing cash savings or their standard debit card
6% said they would consider using unregulated or higher-cost forms of credit
As the new rules come into effect, it will be important that people understand what the changes mean for them and how they could affect the way they use BNPL.
To help address these concerns, Abigail Foster, personal finance expert, breaks down exactly how these new affordability checks work and why soft searches shouldn't be a cause for concern.
Text transcript
Buy now pay later is about to change and I'm here to explain why with my new mini whiteboard. Buy now pay later is exactly what it says on the tin. You buy your item now, pay for it later. So this could mean you pay it in three installments or you pay after 30 days.
It's about to become regulated which means that lenders are going to have to run affordability and credit checks before approving applications. And if you were thinking, "Oh, I had no idea that buy now pay later was even regulated." You're not the only one. 59% of people don't know these rules are coming. despite the fact that one in 10 people use buy now pay later for essential spending every single month.
But here's the thing, it's not necessarily a bad thing. It's to help encourage more responsible lending and help consumers make more informed borrowing decisions. If you're worried about being rejected, you're not the only one. 14% of people say they avoid applying for credit and loans because they're scared of being turned down.
If you're unsure what your options are, there are soft eligibility checkers online that can help you see which credit products you're eligible for without affecting your credit score. If you want to find out more about the new buy now pay later rules, Compare the Market has a really helpful page that breaks down all of the changes. Comment the word buy below and I'll send you the link to that website.
In this video, Abigail Foster explains what the new affordability checks mean, why they're being introduced, and what consumers can expect when applying for BNPL.
How do people use Buy Now, Pay Later?
Buy Now, Pay Later products are used for a wide variety of purchases, from larger household items to everyday spending. Our research explores how shoppers currently use BNPL services and the role they play in household finances.
Fashion, clothing and shoes
Fashion, clothing and shoes remain the most common purchases made using Buy Now, Pay Later products, with 39% of consumers saying they have used BNPL for these items.
Essential spending
Our research found that 10% of respondents use BNPL at least once a month for essential expenses such as groceries, household bills and other everyday costs. Among adults aged 18-34, this rises to one in six (17%).
These findings highlight that some people are using BNPL products to help manage the cost of everyday living, rather than solely for larger discretionary purchases.
For those using these payment methods to cover everyday bills, it may be a sign that finances are feeling stretched. If you’re declined following the regulation changes, it can be a helpful opportunity to seek support, such as speaking to providers about payment options or exploring free advice to help manage bills more comfortably.
Takeaways and food delivery
Our survey found that 19% of people have used BNPL to pay for takeaway food and delivery services. This rises among younger consumers, with nearly 30% of BNPL users aged 18–24 and 32% of those aged 25–34 using BNPL in this way.
While BNPL is commonly associated with larger purchases, the research shows it is also being used across a range of lower-cost spending categories.
Methodology
Based on a nationally representative consumer survey of 3,000 UK adults, conducted between 05.06.2026 - 10.06.2026
To show which items will be protected under the new regulations, retailer market research on typical item costs was cross referenced with consumer spending categories to determine eligibility for legal purchase protection from 15 July 2026. Sources
FAQs
How do buy now pay later rules protect shoppers?
From July 15, 2026, the FCA's Consumer Duty will apply. This means lenders must ensure that credit is genuinely affordable for you before they approve it, preventing consumers from taking on unmanageable debt. You will also gain access to the Financial Ombudsman Service (FOS) if you have a complaint, and Section 75 protection for single items costing between £100 and £30,000.
UK BNPL regulation on affordability and creditworthiness assessments: what is changing?
Lenders will be legally required to run proportionate affordability checks for every transaction. Being registered on the electoral roll can form part of the information lenders use when assessing applications.
How does BNPL risk compare with credit cards?
Previously, BNPL was seen as a lower-risk, consequence-free way to borrow. However, under the new BNPL regulations, the BNPL risk profile aligns much closer to traditional credit cards. Missed payments may affect your credit profile, depending on how information is reported by lenders and credit reference agencies, which could impact your ability to secure a mortgage or car finance in the future.
Who is the best buy now pay later provider UK?
The best buy now pay later provider UK for you will depend on your specific needs, such as the repayment terms, late fee structures, and whether you are purchasing high-ticket items. Following the regulation changes, all providers operating in the UK must adhere to the same stringent FCA standards, ensuring a baseline level of fairness and transparency across the board.
Looking for something else?
Allie has spent her career helping people quickly understand complicated topics, to help them save money and focus on what matters. With almost 10 years’ experience writing, leading and managing content, she is an expert in personal finance and insurance products.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Abigail Foster is a personal finance expert with a background in accountancy, media and financial education. A Chartered Accountant and founder of Elent, she is known for explaining complex money topics in a clear and practical way. Abigail is the author of The Money Manual and a regular voice across ITV’s This Morning, LBC and Sky News.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
What our expert says...
Buy Now, Pay Later has become an increasingly popular way for people to spread the cost of purchases, but many shoppers may not realise that the rules are changing. As these new regulations come into effect, it's important that consumers understand both the protections available to them and what to expect when using BNPL products.
The changes are designed to bring greater transparency and stronger safeguards for borrowers, including clearer information about how products work and additional routes for support if something goes wrong.
Whether you're considering Buy Now, Pay Later or any other form of credit, taking the time to understand the terms, compare your options and ensure repayments fit comfortably within your budget can help you make more confident financial decisions.