Money Box Live: Buy Now, Pay Later Shake-Up
Loading player...
New regulations begin today (Wednesday July 15th) for shoppers using Buy Now Pay Later. Consumers using services like Klarna and Clearpay will now be given more protection but also a greater risk of rejection, as new affordability checks begin.
BNPL schemes often provide interest free payment options over several months and have proved immensely popular. Experian estimates that a 100mn transactions were made that way last year, adding up to about £7bn.
Meanwhile, new data from one of the country’s largest free money advice services, Money Wellness, shows BNPL has become an increasingly common feature of customers' finances over the past four years, with June recording 4,520 customers seeking help with BNPL debt. That's the highest June on record and second only to the traditional post-Christmas spike seen in January.
Presenter Felicity Hannah talks to the Financial Conduct Authority to find out if the new rules are going to improve things for shoppers. She’s joined by an expert panel answering listener questions – Mick McAteer of The Financial Inclusion Centre, a UK not-for-profit policy and research group. and Matthew Sheeran from Money Wellness.
Presenter: Felicity Hannah
Producer: Craig Henderson
Editor: Jess Quayle
Senior News Editor: Sara Wadeson
Photo credit: Pakorn Supajitsoontorn via Getty Images.
(This episode of Money Box Live was first broadcast on BBC Radio Four at 3pm on Wednesday 15th July)
BNPL schemes often provide interest free payment options over several months and have proved immensely popular. Experian estimates that a 100mn transactions were made that way last year, adding up to about £7bn.
Meanwhile, new data from one of the country’s largest free money advice services, Money Wellness, shows BNPL has become an increasingly common feature of customers' finances over the past four years, with June recording 4,520 customers seeking help with BNPL debt. That's the highest June on record and second only to the traditional post-Christmas spike seen in January.
Presenter Felicity Hannah talks to the Financial Conduct Authority to find out if the new rules are going to improve things for shoppers. She’s joined by an expert panel answering listener questions – Mick McAteer of The Financial Inclusion Centre, a UK not-for-profit policy and research group. and Matthew Sheeran from Money Wellness.
Presenter: Felicity Hannah
Producer: Craig Henderson
Editor: Jess Quayle
Senior News Editor: Sara Wadeson
Photo credit: Pakorn Supajitsoontorn via Getty Images.
(This episode of Money Box Live was first broadcast on BBC Radio Four at 3pm on Wednesday 15th July)
