Buy Now, Pay Later Regulation: What This Means for Travellers in the UK

Buy Now Pay Later allows customers to pay for a purchase in several installments rather than paying everything at once.

Finder reports that Buy Now Pay Later is becoming increasingly popular. By 2026, 54% of UK adults had used it, compared to 42% in 2025, giving consumers greater choice over how they manage costs.

Since July 15, new rules apply to third-party Buy Now Pay Later services in the UK, and the Financial Conduct Authority (FCA) is now in charge of overseeing them. As BNPL products come under regulation, consumers can benefit from greater clarity and additional protections when using these payment options.

What this means:

• You'll have an affordability check, with lenders required to consider whether repayments suit your finances.
• You'll be offered support by lenders, rather than being passed to debt collectors.
• You can now raise unresolved complaints with the Financial Ombudsman Service.
• Like traditional credit cards, you have clear rights to claim a refund for faulty goods or services not received.
• You'll receive clear and upfront information about payment schedules, amounts due, fees for missed payments, and contract terms.

So, what does this mean for travellers?

In August 2026, we at Alternative Airlines asked 1,081 people why BNPL is important for travellers and why it is becoming a popular way to pay.

We found that pay later options are important because booking a flight is often more than just making a purchase. For many people, it means more than just going on holiday.

Seeing friends and family

Our research shows that 59% of travellers fly to visit friends and family. For many, a flight is how they spend Christmas with a parent, visit a grandparent, see friends, or attend important events they can't miss.

When travel is a necessity, not just a choice, it's especially important for lenders to check if you can afford the payments. This helps people who need to fly avoid taking on debt they can't handle.

If you have trouble making payments, lenders should offer help instead of sending your account to debt collectors. This way, you can ask for support without worrying about collections.

Frequent flyers

Our research shows that around 45% of people fly at least three times a year. Frequent flyers might end up with several BNPL agreements at the same time. For instance, if someone books a few trips throughout the year, they could have different payment plans running at once. The new regulation helps by making sure consumers always know what they owe, when payments are due, and what fees apply. This brings clarity to a situation that could otherwise get confusing.

People who travel often are more likely to face cancelled flights or schedule changes because they fly so often. Clear rights to claim a refund for services not received, plus the ability to escalate unresolved complaints to the Financial Ombudsman Service, also help protect travellers.

Meanwhile, around 60% of travellers say they have used BNPL before, suggesting it's a familiar way for consumers to spread the cost of purchases. For those using BNPL to manage the cost of flights to visit friends and family, it offers flexibility and a clearer sense of what they are committing to. Similarly, frequent flyers gain added reassurance from transparent payment schedules, helping them manage multiple flights.

As the travel industry adopts more flexible payments, regulation can help ensure consumer choice and protection keep up, helping travellers to see family and fly when they need to.