NEWS
NEWS
UK Buy Now, Pay Later market forecast to reach US $ 58.75 billion by 2030
Acomprehensive 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.
FDIC proposes enhanced recordkeeping rules for bank-FinTech partnerships
In June 2025, the Federal Deposit Insurance Corporation( FDIC) unveiled a proposal to strengthen recordkeeping requirements for banks partnering with FinTech companies, aiming to protect consumers and improve transparency within the sector.
Under the proposed rules, banks would be required to identify the beneficial owners of each account and maintain detailed balance records. While third-party FinTech firms may keep these records, banks must retain unrestricted access to this data at all times, even in cases where the intermediary faces bankruptcy or insolvency. This measure is designed to ensure continuity and security of customer information regardless of disruptions.
The proposal follows the 2024 bankruptcy of Synapse Financial Technologies, a Banking-as-a-Service provider whose collapse caused numerous partner banks to freeze customer accounts. Regulators estimate that tens of thousands of customers were affected, raising urgent concerns about consumer protection and operational risks in bank-FinTech partnerships.
FDIC Chairman Martin Gruenberg emphasised the importance of the new rules.“ Consumers must have timely and reliable access to their funds, even if a bank or its FinTech partner encounters financial difficulties.” He added that the proposal“ sets clear expectations for accountability and transparency” in these collaborations.
This regulatory move reflects broader efforts by US authorities to oversee the rapidly evolving FinTech landscape, balancing innovation with consumer safety. Banks and FinTech firms will need to review their operational and legal frameworks to ensure compliance if the proposal becomes final.
Industry observers anticipate that the rules will prompt more rigorous due diligence and improved risk management practices across bank-FinTech ecosystems, ultimately strengthening trust in digital financial services. �
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