UK merchants welcome upcoming BNPL regulations

The survey of 1,000 UK business owners highlights a shift in sentiment toward Buy Now Pay Later (BNPL) services. Nearly half of respondents believe the new framework will support long-term stability, while 23% plan to expand their BNPL offerings once the rules are implemented. Merchants anticipate that increased consumer confidence will translate into higher conversion rates and sales, despite lingering concerns among a minority regarding compliance costs and potential friction from affordability checks.

Tamer El-Emary, General Manager UK at PayPal, noted that the company is well-positioned for the transition, as many regulatory requirements mirror existing internal standards. For partners like Pramworld and Farrar & Tanner, the regulation serves as a validation of the payment category. David Winstanley, Director at Pramworld, emphasized that the added transparency will empower shoppers to make more confident decisions on high-ticket items. Retailers remain focused on the importance of brand reputation, with 65% of businesses citing trust as the deciding factor when selecting a payment provider.