TransUnion Welcomes FCA’s Push for Proportionate BNPL Regulation

New data highlights growing reliance on Buy Now, Pay Later for everyday essentials

TransUnion has welcomed the Financial Conduct Authority’s latest consultation on Buy Now, Pay Later (BNPL), calling it a “critical step” in the evolution of the fast-growing payment sector.

The comments come as new research from the global information and insights company reveals that more than one in four (26%) UK adults now prefer BNPL over credit cards for everyday spending — including essentials such as groceries (16%), takeaways (9%), transport (8%), and school supplies (6%).

The study also found that 16% of UK consumers are choosing BNPL due to minimal credit checks, while 13% remain unaware that using BNPL for small, regular purchases can impact their credit report.

Madhu Kejriwal, CEO of TransUnion UK & Europe, said:

“TransUnion has been leading the way on Buy Now, Pay Later for several years – working directly with BNPL providers since 2019 and becoming the first UK credit reference agency to support industry-wide reporting that reflects the unique nature of these products.

“In 2022, we launched our Point-of-Sale Suite to help incorporate BNPL data into credit files in a way that supports responsible lending without unfairly penalising consumers.

“We welcome the government’s continued focus on bringing BNPL into the regulatory framework. Clear, proportionate regulation is essential to protect consumers while enabling innovation and access to flexible payment options. I see it as an essential step in the evolution and maturation of the market.

“As the landscape evolves, we’ll continue to work closely with BNPL providers and regulators to ensure data is used in ways that support financial inclusion and deliver fair, transparent outcomes for consumers – in doing so, this will engender increased consumer confidence.”

TransUnion’s latest research underscores the growing role of BNPL in the UK’s consumer credit ecosystem — particularly as economic pressures make flexible payments increasingly attractive.