regulation-advice

What do I need to do?

To ensure you are ready for Regulation Day, we ask all partners complete the following actions:

Update your website with the approved wording and disclosures

From 15 July, you’ll legally need to display our disclaimer when you promote PayItMonthly.

Ensure your returns and cancellation policy is available and up to date

We’ll email you before Regulation Day to request your latest returns and cancellation policy.

Download and use PayItMonthly approved marketing materials

Our approved marketing materials will be available from 15 July. We'll let you know when they're ready.

Share this with any staff who discuss payment options with customers

Please ensure relevant colleagues read this page and the FAQs below before Regulation Day.

Mandatory Disclaimer (from 15 July)

PayltMonthly is a form of credit that allows you to spread the cost of your purchase over monthly instalments. You must be 18 or over, a UK resident (excluding the Channel Islands), and meet our eligibility criteria. All credit is subject to status and affordability checks. Late or missed payments could impact your ability to access credit in the future. PayltMonthly is deemed authorised and regulated by the Financial Conduct Authority for the purposes of the Temporary Permissions Regime for Regulated Deferred Payment Credit. Details of the Temporary Permissions Regime, which allows firms to carry on deferred payment credit activities while seeking full authorisation, are available on the Financial Conduct Authority's website. Terms and conditions apply. For full details, visit payitmonthly.uk/terms

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Frequently asked questions

We understand that change can be scary, so we want you to be as prepared as possible for the upcoming changes with BNPL. We’ve prepared some helpful FAQs to help you understand what it means for you and your customers.

What is the FCA and the Temporary Permissions Regime?

The Financial Conduct Authority (FCA) is the UK’s financial services regulator. It sets the rules that firms must follow when offering financial products and services, with the goal of protecting consumers, maintaining market integrity and promoting competition.

The Temporary Permissions Regime (TPR) allows BNPL providers, like PayItMonthly, to continue operating while their application for full FCA authorisation is being reviewed. It ensures continuity of service during the transition into regulation.

When does the regulation come into effect?

The new regulatory regime for Buy Now Pay Later (BNPL), also known as Deferred Payment Credit (DPC), comes into force on 15 July 2026 (known as Regulation Day). From this date, BNPL products fall under FCA oversight and customers have additional protections when using BNPL products. Lenders, like PayItMonthly, will operate under the Temporary Permissions Regime from this date, allowing us to continue offering our products and services until we are fully authorised by the FCA.

What happens when the Temporary Permissions ends?

The TPR is open for 6 months, from 15 July 2026 – 15 January 2027. During this time, BNPL providers will need to submit their application to the FCA for full authorisation. PayItMonthly will still be able offer BNPL products while the FCA reviews our application, even if their review takes place is after 15 January 2027, so you will still have continuity of service.

Do I need my own FCA license?

In most cases, no.
If you simply offer 0% interest-free PayItMonthly finance as a payment option to your customers, you can generally rely on our permissions.
However, businesses undertaking regulated credit broking activities may require their own FCA authorisation or appointed representative status.
If you are unsure, please contact us.

How will the changes affect my business?

The main things you may see are:

• Updated checkout journeys for your customers
• A requirement to add new wording and disclosures on your website Marketing Resources
• Additional oversight from us to ensure our products are being offered in a compliant manner

Do customers get cooling off periods?

Yes. Customers have a 14-day right to withdraw from their finance agreement if they no longer wish to use the credit.
If a customer withdraws, they are only withdrawing from the finance agreement. Their purchase, or commitment to purchase, remains in place and continues to be governed by your terms and conditions of sale.
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The customer will therefore need to either:
• pay for the goods or services in full using an alternative payment method; or
• return the goods, where this is permitted under your returns and refunds policy.
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Withdrawing from the finance agreement does not automatically cancel the purchase or entitle the customer to return the goods.

What is Section 75 (Joint liability) and how does it affect my business?

Section 75 of the Consumer Credit Act gives customers additional protection when using regulated credit products. In certain circumstances, a customer may be able to make a claim against both PayItMonthly and the supplier if there has been a breach of contract or misrepresentation.
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What does this mean for my business?
We may contact you for information when investigating a claim and, where a claim is upheld, we may seek recovery from you in accordance with our Partner Terms.

Do I need to do anything different when selling digital subscriptions or products with instant access?

If you sell digital content, subscriptions, memberships or services that are delivered immediately after purchase, you should ensure your checkout includes a clear confirmation that the customer wishes to receive the product straight away and understands this may affect their standard 14-day right to cancel the purchase under consumer law.
This relates to the customer's purchase contract with your business, not their finance agreement.
The customer's 14-day right to withdraw from their PayItMonthly finance agreement always applies, regardless of the type of product being purchased. If a customer withdraws from the credit agreement, they must either:
• pay PayItMonthly for the purchase (unless you agree to accept a return or cancel the purchase in line with your terms), or
• follow any agreed returns process you have in place.
We recommend reviewing your checkout and terms to ensure they clearly explain customers' rights when purchasing digital or instantly accessible products.

What do I need to do?

We’ll support you in any way we can, but key actions will include:
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• Updating website & social media messaging and disclosures
• Only using PIM approved digital and printed marketing materials when promoting finance. Marketing which does not promote finance is unaffected.
• Ensuring you and your teams understand the new requirements so customers can be advised appropriately

How will the changes affect my customers?

Customers will see an enhanced finance application journey, and they may be asked a few more questions to enable us to carry out affordability checks. They will also benefit from:

• Greater protections, including under Section 75 of the Consumer Credit Act, and clearer information
• More consistent affordability checks, so they don’t borrow more than they can afford
• Access to complaints protections, such as escalation to the Financial Ombudsman Service (FOS)

What disclosures do I need to have on my website and social media marketing?

You will need to display clear, compliant information including:
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• That Buy Now Pay Later is a form of credit
• Wording which advises that the regulated product is provided by us. Typically partners place this in the footer of their website or they have a dedicated page on their website which covers finance (this also has Google search benefits). You can access the disclaimer to copy and paste or the template webpage for your website

What changes are happening to customer application journeys?

PayItMonthlys new finance application journey includes:
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• Clearer explanations of the product
• More structured application steps
• Additional customer information and acknowledgements
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We’ve tried to keep the journey simple, so as not to add confusion or additional friction, whilst ensuring customers have the information they need to be able to make informed decisions.

Does this change how I can promote PayItMonthly to my customers?

The FCA expect promotions to be:
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• Clear, fair and not misleading
• Include balanced information about risks
• Follow FCA financial promotion rules
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You should only use PayItMonthly pre-approved marketing resources to promote Buy Now Pay Later to your customers. These will become available from Regulation Day via our Marketing Resources page.
If you have Physical Point of Sale we are happy to provide you with replacement Point of Sale free of charge to use in your customer areas in store. You can request a new POS Pack via support@payitmonthly.uk

Will the changes affect approval rates?

There may some impact due to enhanced affordability and eligibility checks. However, these changes are designed to support responsible lending and reduce customer risk and should ultimately lead to better collection rates as customers should not be borrowing more than they can afford, so are less likely to miss payments.

Can you offer interest-bearing products now?

We can still only offer interest-free products. In order to offer interest-bearing products, we would need to be granted additional permissions from the FCA during full authorisation later this year.
We will communicate clearly if and when such products are introduced. If you have any questions regarding interest-bearing offerings, please get in contact with us.

Do I have to get all marketing materials I use approved by you?

You should only use pre-approved marketing materials available on our Marketing Resources page from 15 July 2026. You should not create your own marketing materials. Large network partners can contact us about bespoke marketing resources directly via their PayItMonthly account manager or by contacting support@payitmonthly.uk

Do I need to replace my in store POS?

If you have received POS previous to July 15th 2026 and you have yet to receive updated POS, please reach out to us at: marketing@payitmonthly.uk/support@payitmonthly.uk

Will you be carrying out more audits and oversight of my business?

It is likely that you will see some increased oversight from us, particularly where we see patterns of customer complaints or when we are investigating Section 75 claims. We will also monitor your websites and social media channels to ensure our products are being marketed in line with our guidelines set out on our Marketing Resources Page.

Are my terms going to change?

Yes, we may update our Partner terms to reflect the new regulatory requirements. We’ll provide advance notice and guidance on any material changes.

What happens to agreements signed before 15th July 2026?

Agreements made before Regulation Day will not be classed as ‘regulated agreements’. Customers who entered into agreements before this date will not have the same protections as those who have entered into agreements from 15 July onwards.

Compliance Checklist

Key regulation dates

Cooling off & joint liability

Greater consumer protection

Affordability assessments

Additional support

Financial Ombudsman Service

Section 75 protection

Rules & Disclaimers

Logos

Template Page (New)

Website Banners

Social Media (New)

Email (New)

Point of Sale (New)

Pay Link Point of Sale

Frequently asked questions