Branch² Intelligence
Buy Now Pay Later rules to bring refunds and rejections
Key takeaway
UK BNPL regulation now requires FCA approval, giving consumers refund rights and ombudsman access.
- Step 1UK government mandates FCA approval for BNPL lenders, imposing compliance costs and affordability checks.
- Step 2Klarna and Clearpay tighten credit criteria, reducing approval rates and transaction volumes for merchants.
- Step 3SMEs using BNPL at checkout see lower conversion rates but reduced bad-debt exposure, shifting payment mix toward debit/credit cards.
Source: BBC News — Business
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