Majority of UK consumers support new Buy Now, Pay Later regulations

According to BNPL provider Clearpay, 77% of UK consumers support the new rules, which will see consumers entering new agreements that have stronger and more consistent protections across the board.

This includes proportionate affordability and creditworthiness checks, clearer information pre-contract, and enhanced support for customers in financial difficulty.

Another 61% agree the regulation will give better protection to consumers when using the payment method, while 42% said checks by the BNPL provider to ensure repayments are affordable would make them more confident about using said payment method.

Nearly half (48%) said the ability to speak to an independent body in case something goes wrong would also raise their confidence in the service.

Before the new rules, BNPL was still widely used by UK consumers, as 39% have used it to make a purchase, with the highest usage among millennials at 53%.

Of those who use BNPL, 53% do so to spread the costs, 35% say it helps with budgeting, and 25% say it’s because it’s cheaper than a credit card or loan.

Clearpay chief executive Rich Bayer said: “We welcome this landmark moment for the sector, as it acknowledges that the way people pay is evolving and recognises the importance of BNPL for the millions of consumers who use it to manage their spending every day.   

“Clearpay is designed to offer a responsible, transparent and flexible way to pay. We have always prioritised consumer protection by capping late fees, and pausing accounts if a single payment is missed. 

“However, consumers can now be reassured that consistent sector-wide protections are in place. The introduction of further safeguards is a welcome step that will help build consumer trust while preserving access to flexible payment options.”