FCA secures contract changes for BNPL customers as more consumers use the product

The FCA has secured further changes to potentially unfair and unclear contract terms for unregulated Buy-Now-Pay-Later (BNPL) firms. It was concerned that PayPal and QVC customers were at risk of harm because of how some of the contract terms were drafted. As a result of the FCA’s focus in this area, both firms have voluntarily made their continuous payment authority terms easier to understand.

The data showing the rise, which is part of the FCA’s Financial Lives research, states that 27% of UK adults (approximately 14 million) have used BNPL at least once in the six months prior to January 2023. This is up from 17% who said they had used it in the preceding 12 months in May 2022. The research also found that frequent users of BNPL are more likely to be in financial difficulty.

Source: FCA