Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the integration of buy now pay later services into digital payment platforms; and what steps they are taking to ensure that consumer credit regulation and affordability safeguards remain effective for the use of those services.

The Government recognises that Buy-Now, Pay-Later (BNPL) products are increasingly embedded within digital payment platforms and are now widely offered to consumers at checkout. Millions of people across the UK have used BNPL products, which can help spread the cost of purchases. However, without regulation there are risks — particularly around unaffordable borrowing.

That is why, in July 2025, Parliament passed legislation to bring BNPL products within the scope of Financial Conduct Authority (FCA) regulation. The new regulatory regime will come into force this July and last month, the FCA published its final rules for BNPL lending.

Under these rules, BNPL providers will be required to carry out affordability checks as well as provide consumers with clear and upfront information about costs and repayment obligations. Consumers will also benefit from stronger rights, including access to the Financial Ombudsman Service and protection under section 75 of the Consumer Credit Act, making it easier to obtain refunds where purchases go wrong. These new rules will ensure that BNPL products remain a useful payment option while protecting consumers from harm.