BUY NOW Pay Later (BNPL) firms have welcomed impending regulation of the sector as the Government prepares to clamp down following a consultation which closed yesterday.
The firm said it had recommended that a new definition of BNPL be created in legislation which defined it as a "credit agreement made under deferred payment credit arrangements". It also advised that a new set of bespoke rules was created that ensured consumer protections and outcomes while allowing the sector to grow and innovate. The consultation was opened following a review of the BNPL sector last year by former Financial Conduct Authority (FCA) boss
New rules are likely to come into force later this year or in early 2023.
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