Buy now, pay later protections changed this year—how does that compare with a credit card?

What changed on 15 July?

The FCA began regulating Deferred Payment Credit, often called BNPL, on 15 July 2026. Its rules bring relevant third-party lending agreements within regulation. The scope includes exceptions, so it would be wrong to say every arrangement labelled “pay later” is now covered.

Agreements entered into before that date remain outside this new regime. A new purchase with a familiar provider therefore needs its own agreement date and terms checked.

What protections does the FCA describe?

For lending in scope, the FCA requires proportionate affordability checks, clearer information about payments and consequences, and support for customers in financial difficulty. Borrowers also have access to the Financial Ombudsman for eligible complaints.

These protections do not turn a scheduled payment into an optional one. Nor does an affordability check tell you whether a purchase is a good fit for every other plan you have for your money.

Compare the actual payment schedules

A credit card usually gives you a monthly statement and payment requirement. A BNPL agreement might divide one purchase into set instalments. Read the particular agreements instead of assuming the familiar label tells you when money will leave your account.

For an invented budgeting example, three payments of £80 on different purchases would add up to £240 if they fell in the same week. Looking at each £80 payment separately would miss the strain on that week’s bank balance.

Ask the same practical questions of both

Put the two options alongside each other before deciding whether to borrow at all.

• What dates are payments due, and how do they fit my income?
• What interest or fees can apply?
• What happens if I miss a payment?
• What is the refund or complaint process for this purchase?
• What other repayments already fall in those weeks?

Protection is only one part of the choice

Neither an interest-free label nor a regulated lender makes an unaffordable purchase manageable. If existing repayments are already difficult, look at those commitments before adding another.

Keep a copy of the agreement and ask the provider to explain anything unclear. For a dispute, identify the lender and agreement date rather than relying solely on the retailer’s checkout description.