# UK's financial watchdog tightens regulatory focus on fast-growing industry.

*business · news · 2026-02-11 · City A.M.*

## Key points

- The FCA's new BNPL regulations will cost lenders and merchants a combined £3bn in lost profits.
- Starting July 15, it will be a criminal offence to operate BNPL agreements without FCA permissions.
- Consumers can now take BNPL complaints to the financial ombudsman, a first for the sector.
- Klarna and Clearpay have preemptively adopted regulatory practices ahead of mandatory FCA oversight.
- Online retailers like Amazon, ASOS, and eBay face profit hits from stricter BNPL transaction rejections.

**Companies:** Klarna, Zilch, Clearpay
**Countries:** United Kingdom

[Read the full story on City A.M.](https://www.cityam.com/buy-now-pay-later-providers-set-for-3bn-hit-in-regulatory-reset/)

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