FCA Regulation Brings Additional Credibility to UK BNPL

To be attributed to Chris Jones, Managing Director at PSE Consulting:

“The FCA’s announcement to bring BNPL directly within its regulatory sphere is a landmark moment for UK consumer finance. Far from stifling the market, these rules signal that BNPL is here to stay, and consumers can be confident they have the same level of protection afforded by other credit products. By introducing mandatory affordability checks, clear product disclosures, and stronger consumer support, the FCA is ensuring all BNPL actors meet the same high standards as the rest of the market. 

In the past, consumer organisations and players in the traditional banking market have raised concerns about the lack of a level playing field for consumer lending, with BNPL exploiting loopholes in regulation. This announcement should put these concerns to rest, and allow BNPL to flourish in the mainstream of consumer credit.

With the rapid arrival of AI shopping, there is a significant opportunity to engage consumers around the subject of credit in new ways. The FCA’s rules will need to evolve to ensure that all players in the consumer credit space from BNPL to traditional credit card providers have these conversations in a responsible manner. AI-powered shopping assistants have the ability to explain credit options, compare BNPL with traditional credit options, and help consumers make informed choices in real time. Consumers will need to feel that they are getting unbiased assistance in this process, and the AI platforms are not being unduly influenced by the highest bidder.”

About the author

Chris manages PSE Consulting’s business and is well known in the UK and EU for his regular insights into payments innovation.  He has spent the last 20+ years leading assignments for major clients during his time at PSE and Accenture. His specialisations include customer proposition development, market entry strategies and enterprise value creation.  Chris is a highly effective communicator, with very strong analytical skills and able to deliver recommendations to C-level clients and company Boards. Chris regularly supports major enterprises, corporates and global digital merchant’s payments bringing new market perspectives and identifying fresh opportunities for innovation and expansion. He has also delivered payment assignments for Fintechs, banks and processors on topics such as: regulatory impacts, new acceptance methods, open banking, BNPL, gateway/acquirer convergence, and opportunities for M&A and inorganic growth.

About PSE Consulting 

PSE Consulting is a leading global provider of payment advisory services to players across the payments landscape. PSE’s expertise has enabled it to deliver actionable market insights and operational optimisation to senior payments leaders for over 30 years. 

To learn more, visit: https://pseconsulting.com/