Countdown to Regulation Day for Buy-now-pay-later (BNPL) firms

On 11 February 2026, the FCA published its finalised Policy Statement (PS26/1) for providers of Deferred Payment Credit (DPC), or unregulated Buy-Now-Pay-Later (BNPL) products and services. These rules will bring unregulated BNPL firms into the FCA perimeter.

DPC is an interest-free credit which finances the purchase of goods or services and that is repayable in 12 or fewer instalments within 12 months or less. This perspective is relevant to firms that will be caught by the new regime - DPC lenders and other credit brokers who offer DPC as a payment option.

Regulated firms will be subject to a number of FCA requirements as set out in the attached document.

With the FCA’s rules for DPC firms now finalised, the countdown to “Regulation Day” (15 July 2026) has now truly begun which means that firms have a little over five months to design, implement and embed any changes to its policies, processes, system and controls, ensuring they are fit for purpose from day one.

We attach a paper that highlights the key developments, timelines for the regulation of BNPL and key actions firms should be prioritising and accelerating now in preparation for regulation day.