Branch² Intelligence
A £3bn reckoning that will reshape buy now, pay later
Key takeaway
FCA regulation of BNPL will require providers to invest in affordability checks and FCA authorisation, raising costs and reducing transaction volumes.
- Step 1FCA regulation imposes affordability checks and authorisation on BNPL providers.
- Step 2Compliance costs rise and transaction volumes fall as fewer consumers pass checks.
- Step 3Retailers using BNPL see lower conversion rates and may switch to alternative payment methods.
- Step 4SME retailers face margin pressure from reduced sales and higher payment processing costs.
Source: City A.M.
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