Watch This Space, page-7431

As they benefit from an exemption in the law for short-term credit-free credits, BNPL products are still unregulated in the U.K.

As a brief description, BNPL products allow consumers to make a purchase, enjoy the good or service and then pay for it later. Repayment is where BNPL is different than credit cards — payment is in equal installments over a specified period of time, usually up to four months, without any interest as long as the consumer pays on time.

However, missing a payment or spreading the cost over a longer period of time could result in late fees, penalties or high-interest rates. Interest rates are also pegged to the credit risk of the borrower — more risky consumers can obtain a BNPL loan, but at a higher interest rate.

A recent report commissioned by the U.K. government identified a number of areas of potential consumer harm if the BNPL market continues growing, as it is expected, while being unregulated.

https://www.pymnts.com/buy-now-pay-later/2022/uk-closes-bnpl-consultation-eyes-new-regulation-in-2022/