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"This is a long overdue clean-up for the Buy-Now, Pay-Later wild west"

ended 19. May 2025

In an HM Treasury announcement published this morning, over 10 million people who use Buy-Now, Pay-Later (BNPL) products will gain stronger rights and clearer protections under new rules - stopping unaffordable borrowing and helping families keep more of their money. Newspage asked financial experts for their views, below.

6 responses from the Newspage community

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Editor
Harry Goodliffe
Director at HTG Mortgages
This is a long overdue clean-up for the BNPL wild west. Modern apps have made it far too easy for people to take on debt without fully understanding the risks. These new rules are a step forward, as while borrowing shouldn’t be banned, it must be safe, transparent and affordable.
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Ben Perks
Managing Director at Orchard Financial Advisers
About time. Many people succumb to the ease and appeal of Buy Now, Pay Later, but it often turns into a thorn in their side. The lack of responsible lending often sees borrowers over exposed and stuck with unaffordable payments. With proper checks and balances, there is a place for buy now, pay later, especially on high value essential items. But it shouldn’t be a means to fund frivolous spending.
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Tony Redondo
Founder at Cosmos Currency Exchange
The 11 million consumers may cheer the new BNPL (Buy Now, Pay Later) rules, gaining affordability checks, section 75 refunds and FOS access to curb debt. This is vital amid an economic climate with inflation set to rise to 3.7%, rising unemployment and meagre economic growth of 0.75% but the 2026 delay risks festive overspending. BNPL firms like Klarna brace for compliance costs, potentially hiking fees or exiting, though the TPR softens the blow. Retailers may well fear sales dips with Klarna’s 22,000 partners already feeling the squeeze. The FCA aims to tame the “wild west,” yet over-regulation might choke fintech innovation, leaving low-income users reliant on fewer choices and costlier loans. Meanwhile, systemic issues like housing unaffordability fuel BNPL reliance, urging broader reforms. Balancing consumer safety with market vitality remains the challenge.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is a long overdue announcement and should go some way to turning this sector from the wild west into something more civilised. The issue is that many people use Buy-Now, Pay-Later products without fully understanding the implications. Hopefully, this announcement will mean that more people are aware of what they are getting themselves in for when they take out these products. Transparency is key for consumers in this sector, and even though it's taken the government a while to act, it's better late than never.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Well, it only took a mountain of consumer debt and countless financial hangovers, but the government has finally crashed the BNPL party. After watching these slick payment options multiply like rabbits on retail websites for years, ministers have unveiled regulations that'll force the industry's cool kids to actually check if customers can afford those impulsive purchases. That is a good thing, something I believe should have been thought through right at the very beginning. The new rules will need a proper implementation, which depends on how this government decides to actually do more than lip service. This could protect 10 million Brits who've been clicking that tempting BNPL button with abandon, often with little understanding of the financial quicksand they're stepping into. Finally, these companies will have to play by grown-up rules, proving that even in our tap-to-pay world, there's no such thing as financial magic tricks, just consumer rights that were long overdue.
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Saqhib Ali
CEO at ZeroPA
As a BNPL provider, we welcome consumer protection. Many unscrupulous providers promote BNPL with 3-6 instalments interest free then levy fees, charges and penalties. The young are drawn into incurring many thousands of pounds in BNPL purchases on wants rather than needs. Without credit checks, income and expenditure review or appraisal of existing arrears, the position for many is daunting.
It can lead to stress, anxiety and mental health deterioration. As CEO of ZeroPA we charge no interest, fees or charges and offer up to 12 instalments on charity shop purchases of £50-£150 towards furniture, clothing, small electricals and white goods.