Rocio Concha, Which? Director of Policy and Advocacy said:
“It is positive to hear that the FCA stands ready to bring Buy Now Pay Later (BNPL) firms into regulation within 12 months, after the Treasury was reported to be considering shelving its plans to do so.
“BNPL options appear at many online checkouts, but Which? research shows that many users do not realise they are taking on debt or consider the prospect of missing payments, so the government’s new rules and legislation proposed earlier this year were seen as an important step.
“With BNPL lenders like Klarna supporting regulation, the government has no excuse to delay. It must ensure that consumers are given stronger safeguards to protect them and warn about the risks of using BNPL schemes. This needs to include greater marketing transparency and information about the risks of missed payments and credit checks before consumers are cleared to use BNPL providers.”