The government this week announced plans to regulate ‘buy now, pay later’ (BNPL) providers and put an end to “unconstrained borrowing”.

Privalgo fully supports the proposed draft giving legal powers to the Financial Conduct Authority (FCA). Regulating BNPL will give better protection to 10 million consumers in the UK and will create a level playing field for providers.

Theodore Morita, Compliance Officer at Privalgo favours the changes, “Balanced and forward-thinking regulation is always welcomed by the market. This has already come to fruition with the success of Open Banking, where over six million active users in the UK are protected by Payment Services Directive Two (PSD2).”

“We believe legislation will improve the market as a whole, whittling out unscrupulous players and protecting consumers and welcome these changes.”

“The Payments and E-Money space, where key players like Privalgo are striving to offer more innovation and better services to consumers and corporates, can only benefit from proportionate regulation and active supervision.”