PAYMENT METHOD PROFILES: BNPL 2
Regulation Along with the interest in BNPL as a payment method, the interest in regulation has also increased over the last several years:
In October 2023, the EU published a directive which incorporated BNPL into the Consumer Credit Directive. 662
In May 2024, the CFPB in the U.S. issued a rule that BNPL companies are credit card providers. 663
In June 2024, the Albanese government in Australia introduced new legislation to protect consumers by regulating BNPL operators as consumer credit. 664
In May 2025, the HM Treasury in the UK published a proposal to regulate Buy Now, Pay Later for domestic premises suppliers - businesses that sell goods or services directly to consumers in their homes, - requiring them to seek credit broking permissions to offer BNPL as a payment option. In June 2025, the UK government decided against including this proposal in their upcoming amendment to the Financial Services and Markets Act 2000; however, consumer protections (e.g., BNPL lenders’ responsibility to perform affordability and creditworthiness checks will be included), and the BNPL market will continue to be monitored closely. 665
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