Embedded finance

Recent Articles

•  

  22/10/2024

  Regulation of BNPL

  On 17 October 2024, HM Treasury (“HMT”) published a consultation setting out its detailed approach to regulating the Buy-Now Pay-Later (“BNPL”) market, along with draft legislation which would bring certain deferred payment credit (“DPC”) agreements and BNPL products, which were previously exempt from consumer credit regulation, into the remit of the Financial Conduct Authority (“FCA”). The new rules will provide certainty to the rapidly growing sector and allow BNPL users to benefit from key protections offered by other consumer credit products.This...

  Read more
•  

  11/10/2023

  EU: Adoption of the new consumer credit directive: impact for BNPL

  On 9 October 2023, the Council of the European Union adopted the new directive on consumer credits (CCD) in its final and definitive version. This version was already approved by the European Parliament on 12 September 2023. The CCD introduces a new set of consumer protection rules, which impact Buy-Now-Pay-Later (BNPL) activities. BNPL is a frequently used payment method whereby a merchant enables its customers to postpone payment while purchasing goods or services, generally at the intervention of a third-party lender.Currently, BNPL falls outside the scope of the previous Consumer Credit Directive...

  Read more
•  

  01/03/2023

  Regulation of BNPL

  On 14th February 2023, HM Treasury (“HMT”) opened a consultation on the government’s draft legislation to regulate certain types of currently exempt interest-free “Buy-Now Pay-Later” (“BNPL”) products. This follows an initial announcement in February 2021 of the intention to regulate, and the first consultation launched in October 2021, to gather stakeholder views on a proportionate regulatory approach.The government’s proposed legislation will bring these products under the regulatory regime of the Financial Conduct Authority (“FCA”)....

  Read more