PAYMENT SOLUTIONS
“ If the proposed regulation makes its way into reality , consumers will benefit from enhanced liability protection ”
DANIEL HOLMES , SME FRAUD PREVENTION ,
FEEDZAI
“ If the proposed regulation makes its way into reality , consumers will benefit from enhanced liability protection , meaning they are out of pocket less often . Additionally , banks will have to fundamentally rethink their approach to monitoring not only payments leaving their bank , but also payments that they receive .”
Buy Now Pay Later ( BNPL ) to adhere to new rules The largely unregulated BNPL space has been navigating stormy waters of late . With inflation driving up costs of living , the post-pandemic economy is seeing more people turn to loans , and BNPL is expected to feature prominently as consumers reduce their immediate spending and turn to it as a mechanism for essentials .
By mid-2023 , providers will face harsher regulatory procedures . The new directives will necessitate BNPL providers carrying out in-depth credit checks on consumers to ensure that they can afford to take out loans . Furthermore , lenders must also be approved by the Financial Conduct Authority .
100 January 2023