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

What travellers told us about Buy Now, Pay Later

We surveyed 1,081 people to find out how often they fly, why they travel and how they use flexible payment options.

• Around 59% of people use BNPL to help pay for trips to see friends and family, compared with just 23% using it for holidays.
• Approximately 45% fly at least 3 times a year.
• Around 60% have used Buy Now, Pay Later before, compared to 40% who haven't.

Here's what you need to know

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.

How are travellers using BNPL?

To understand how these changes relate to how people travel, we asked 1,081 people in August 2026 about their travel habits and experiences with BNPL.

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

Seeing friends and family

Our research shows that around 59% of BNPL 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 BNPL customers 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 regularly. 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, about 60% of travellers say they have used BNPL before, compared with 40% who haven't, suggesting it's a familiar way for consumers to spread the cost of purchases.

Our research also shows this extends to travel in ways that may not be immediately expected, with trips to see friends and family featuring prominently alongside more traditional reasons for flying.

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.

Frequently Asked Questions

Is BNPL regulated in the UK?

Yes. From 15th July 2026, the Financial Conduct Authority (FCA) began regulating certain Buy Now, Pay Later products for the first time.

What are the new BNPL rules?

The new rules offer more protection for people using BNPL products. Lenders must now check whether you can afford the credit and explain repayment terms, payment dates, and late fees more clearly. If you have trouble making payments, you should also be able to get support.

What will BNPL regulation mean in 2026?

With these changes, BNPL users will get clearer information, affordability checks, and better protections. If there is a problem, they can now take their complaint to the Financial Ombudsman Service.