A comprehensive new report published in June 2025 projects that the UK Buy Now, Pay Later (BNPL) market will grow significantly, increasing from US$34.28 billion in 2024 to US$58.75 billion by 2030. This represents a compound annual growth rate (CAGR) of 8.8% during the forecast period.
The report emphasises that this growth is set against a backdrop of new regulatory frameworks expected to come into effect by 2026. These regulations will impose stricter credit assessments, consumer protection measures and transparency requirements on BNPL providers.
BNPL companies will need to adapt their business models to comply with these changes while maintaining the rapid growth momentum. The report notes, “Providers that successfully navigate the evolving regulatory landscape will sustain consumer trust and ensure long-term growth.”
The BNPL market’s expansion is driven by increasing consumer demand for flexible payment options, particularly among younger demographics who value convenience and budgeting control.
However, the report cautions that providers must balance growth ambitions with responsible lending practices to avoid regulatory penalties and reputational risks.
As competition intensifies, BNPL firms are also investing in technological innovation and partnerships with merchants to enhance user experience and broaden market reach.
The evolving regulatory environment, combined with strong market demand, positions the UK BNPL sector as one of the most dynamic areas within the FinTech ecosystem for the coming decade.
