Consumer finance landscape in the UK reshaped by BNPL regulation
In May 2025, HM Treasury announced new regulations for Buy Now Pay Later (BNPL) lending. This followed the release of a consultation paper in October 2024. BNPL allows customers to pay for purchases in interest-free instalments, typically spread over 12 months or fewer.
Until now, this type of lending has remained unregulated, despite its rapid growth and widespread adoption. The introduction of a regulatory framework marks a pivotal moment for consumer finance.
BNPL products have surged in popularity, particularly among younger consumers and those seeking flexible payment options. However, this growth has often outpaced the safeguards traditionally afforded to borrowers. The new rules aim to close that gap by introducing affordability checks and clearer consumer protections.
Omni fully supports these changes. Affordability checks are essential to ensure individuals can repay their debts without compromising their ability to meet basic living costs. Responsible lending is not just good practice; it’s a necessary safeguard against financial hardship. By assessing affordability upfront, lenders can help consumers make more informed decisions and avoid falling into unmanageable debt.
These reforms are long overdue.
BNPL has long operated without clear regulatory oversight. Although it provides credit-like services, it has not been subject to the same scrutiny as traditional financial products.
The updated regulations introduce a more balanced approach. They promote better risk awareness and greater transparency.
The UK is tightening BNPL regulations just as global attitudes toward the sector are shifting. In the US, Apple recently announced plans to end its in-house Pay Later scheme. Instead, it will collaborate with established financial institutions.
This change reflects a broader trend. As economic pressures mount and regulatory demands grow, even tech giants are rethinking how they offer consumer credit. You can read more about this development in the BBC article on Apple ending its Pay Later scheme here.
The UK’s regulatory changes aim to support innovation while ensuring it serves the best interests of consumers. By bringing BNPL into the regulatory fold, the government is helping to create a fairer, more transparent market. This benefits not only consumers but also responsible lenders who have long advocated for higher standards.
At Omni, we believe this shift will strengthen the integrity of the BNPL market. The new regulations give customers greater confidence when using finance products. The regulations protect consumer rights and hold lenders accountable to consistent standards. It also levels the playing field, allowing ethical providers to compete fairly.
This marks a meaningful step forward. It aligns with Omni’s commitment to ethical finance and long-term customer wellbeing. The future of BNPL is not just about growth, it’s about growing responsibly.
