Is buy now, pay later regulated in 2026?
In the UK, yes: the FCA regulates BNPL since July 15, 2026. In the EU, the Consumer Credit Directive CCD2 brings most BNPL under credit law from November 20, 2026. In the US, there is no federal BNPL-specific rule since the CFPB withdrew its 2024 guidance.
In detail
In 2026, BNPL is moving under credit regulation in Europe, while the US has no federal BNPL-specific rule.
United Kingdom
The FCA regulates BNPL since July 15, 2026. Providers need authorization and must apply rules on affordability, information to borrowers and fair treatment.
European Union
The revised Consumer Credit Directive, CCD2, brings most BNPL under credit law from November 20, 2026. Interest-free deferred payment, previously often outside the scope of consumer credit rules, is largely covered. Providers face creditworthiness assessments, pre-contractual information duties and rules on advertising.
United States
There is no federal BNPL-specific rule since the CFPB withdrew its 2024 guidance. States can still apply their own lending and consumer protection laws.
What it means for payment operators
The regulatory burden falls mainly on the BNPL provider, which acts as the lender. For platforms and their merchants, the changes show up in the checkout flow, in the information shown to shoppers and in provider terms. Offering BNPL through established, authorized providers, connected as payment methods per market, keeps your merchants on the right side of these rules without making your platform a lender.