New FCA rules for the UK's £14bn BNPL market take effect Wednesday, requiring lenders to verify creditworthiness and affordability each use, and possibly request income/expenditure data for risky borrowers.

Consumer group Fair4All Finance estimates 20 to 30 per cent of the 10mn BNPL users—up to 3mn people—could be blocked. Many of those rejected have never missed a BNPL payment.

Providers Klarna and Clearpay downplay the risk, saying regulation adds protections like ombudsman complaints and credit‑card‑style refunds, and cite growth in Australia and Turkey after similar rules. Clearpay CEO Richard Bayer says the framework “optimises for inclusivity” and will boost trust and demand.

The Financial Ombudsman Service expects ~2,000 BNPL cases yearly. Debt charities warn of multiple BNPL debts accumulating, and some analysts predict market consolidation as smaller firms struggle with compliance.