Retailers and financiers for BNPL may be heaving a sigh of relief. According to reports, more stringent legislative regulation of the buy-now-pay-later industry may be postponed.
According to the report, the government is prepared to abandon its intentions to rein in Britain’s fastest-growing financial industry because of worries that doing so may reduce the supply of low-interest products in the face of the cost-of-living issue.
In recent discussions with the business, it was reported that treasury officials were informed that some of the sector’s top players would leave the UK market if they are subjected to ‘heavy-handed’ regulation.
A source claimed that although a final decision had not yet been made, the Treasury was inclined to postpone any legislation without having a specific deadline in mind.
In the last three years, BNPL companies have provided consumers with loans totaling well over £10 billion, with the instalment payment plans helping the fashion industry. However, proponents of the cause assert more and more that the Financial Conduct Authority (FCA) must immediately regulate the BNPL sector.
The treasury announced in February 2021 that it would bring unregulated BNPL services under the FCA’s jurisdiction, and in February of this year it released a consultation document on proposed legislation.
Bharat Tex Special Report 2026 
