Buy now, pay later providers set for £3bn hit in ‘regulatory reset’

cityam

Feb 11

The BNPL industry is bracing for a shakeup. (Image: PA) Providers of buy now, pay later services are set to feel the crunch as the UK’s financial watchdog tightens its regulatory focus on the fast-...

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(Image: PA) Providers of buy now, pay later services are set to feel the crunch as the UK’s financial watchdog tightens its regulatory focus on the fast-...</p>\n\n<a href=\"https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Buy now, pay later providers set for £3bn hit in ‘regulatory reset’</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBuy now, pay later providers set for £3bn hit in ‘regulatory reset’\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-11 10:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The BNPL industry is bracing for a shakeup. (Image: PA) Providers of buy now, pay later services are set to feel the crunch as the UK’s financial watchdog tightens its regulatory focus on the fast-...</p>\n\n<a href=\"https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FCA","symbol_name":"First Trust China AlphaDEX Fund","start_time":0,"source_url":"https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/","article_id":"2610063426","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/02/Klarna_IPO_TimesSquare3.jpeg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2610063426","pubTimestamp":1770775200,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"Deferred payment credit lenders, a sector which include the likes of Klarna, Zilch and Clearpay, are projected to lose 1.4bn with the majority coming from 929m in lower transactions.Stay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.The size of the BNPL market has expanded rapidly, reaching 13bn in the last year after hitting 60m in just 2017. This came amid rapid growth in the pandemic, with the service now making up roughly 10 per cent of all UK e-commerce.Burke said the temporary permissions regime – a transitional bridge designed to help firms continue to operate legally while applying for full FCA authorisation – would “smooth” the transition, though warned those not already operating to the standard would find the process “demanding”.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FCA":"First Trust China AlphaDEX Fund"},"translate_title":"“先买后付”提供商将在“监管重置”中损失30亿英镑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FCA":1},"content_text":"The BNPL industry is bracing for a shakeup. (Image: PA) Providers of buy now, pay later services are set to feel the crunch as the UK’s financial watchdog tightens its regulatory focus on the fast-growing industry.Merchants and lenders are set to take a combined hit of as much as £3bn following the regulation overhaul by the Financial Conduct Authority (FCA), according to its own projections. The City watchdog is enforcing proportionate creditworthiness assessments for every transaction and making service providers subject to Consumer Duty. The new rules – which come into effect from July 15 – will make it a criminal offence to enter into a new agreement without the proper permissions or registration.Consumers will also be able to take cases to the financial ombudsman, in a landmark change for the buy now, pay later (BNPL) sector.\n\nDeferred payment credit lenders, a sector which include the likes of Klarna, Zilch and Clearpay, are projected to lose £1.4bn with the majority coming from £929m in lower transactions.\n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nMeanwhile, on the merchant side, online retailers across consumer sectors will face an identical hit to profit. The likes of Amazon, ASOS and eBay are projected to lose £1.4bn from a dramatic reduction in transactions as customers face rejection for a loan or find the newly-regulated process too strenuous.“We expect our regulation will reduce the number of transactions carried out compared to the baseline scenario,” the watchdog said. “This may lead to reduced consumption than if deferred payment credit had otherwise remained unregulated.”\n\nRegulate now, lose customers laterThe FCA said the number of consumers using the services may fall due to no longer meeting the lending criteria or facing delays in being approved.The remaining chunk of lenders’ hit is set to come from £243m lost in late fees – with the FCA projecting a fall in missed payments due to enhanced checks – and £204m in compliance costs.“From an industry perspective, the challenge will be implementation,” Damien Burke, head of regulatory practice at Broadstone, said.“Lenders will need to adapt systems, data and underwriting processes quickly, while maintaining the frictionless customer journeys that have driven BNPL’s popularity.”\n\nThe size of the BNPL market has expanded rapidly, reaching £13bn in the last year after hitting £60m in just 2017. This came amid rapid growth in the pandemic, with the service now making up roughly 10 per cent of all UK e-commerce.Burke said the temporary permissions regime – a transitional bridge designed to help firms continue to operate legally while applying for full FCA authorisation – would “smooth” the transition, though warned those not already operating to the standard would find the process “demanding”.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}