Q&A: Clearpay CEO Rich Bayer on the Evolution of BNPL

Buy Now, Pay Later (BNPL) has officially gone mainstream, reshaping retail growth and consumer habits. The UK market is entering a mature phase as upcoming regulations bring BNPL in line with traditional lending – introducing stricter affordability checks, transparent terms, and formal complaint access to boost consumer protection.

As a leading UK provider, Clearpay is navigating this pivotal transformation under CEO Rich Bayer, who focuses on scaling sustainably by blending a seamless user experience with responsible lending.

In this Q&A, Rich shares his perspective on navigating this regulatory turning point, dismantling common industry misconceptions and balancing market growth with consumer trust under increased scrutiny.

What does BNPL regulation actually change for consumers?

We welcome the introduction of regulation because it is an important milestone that brings greater consistency to the sector.

From 15 July, customers will benefit from clearer information before they enter a BNPL agreement, proportionate affordability and creditworthiness checks, access to the Financial Ombudsman Service, and Section 75 protection for qualifying purchases. 

This will strengthen protections that we already have in place, such as capping late fees and pausing accounts if a single payment is missed. 

These changes will give consumers greater confidence. They can continue to benefit from the flexibility BNPL offers while knowing there are sector-wide safeguards in place.

We welcome the new framework and believe well-designed regulation will help build even more trust in the sector. 

Has BNPL officially gone mainstream? What proves it?

Yes. BNPL has become a mainstream payment choice for millions of UK consumers because it offers a simple way to spread the cost of purchases without paying interest. 

Our latest research found that 39% of consumers have used BNPL, whilst 25% of those who use BNPL do so because it is cheaper than a credit card or loan.

It's increasingly an everyday financial tool rather than a niche payment option.

In recent years consumers have become more comfortable using digital payment methods, they expect flexible payment choices at checkout, and BNPL is an established part of that mix. 

Will tougher rules boost trust or slow growth?

The new rules will strengthen trust and support long-term growth of the sector. Consumers consistently tell us they welcome regulation because it provides greater protection and gives them confidence. 

Our research found that 77% of consumers support BNPL regulation, 61% believe it will provide better protection, and nearly half (48%) say the ability to complain to an independent body would make them more confident about using BNPL.

Responsible innovation and effective regulation are not mutually exclusive.

Clear, proportionate rules enable sustainable growth because consumer confidence grows while providers continue to develop products that meet needs. 

Can BNPL regulation become a model for wider fintech regulation?

Absolutely. The UK’s regulation of BNPL is a great example of what modern fintech regulation should look like. 

Government, regulators and industry bodies worked together to balance consumer protection with sector innovation. 

We shared our data on how BNPL is serving customers and how existing safeguards could be strengthened most effectively.

In turn, we spoke to consumer groups about what vulnerable consumers needed from the new rules and have adapted our offering accordingly.  

The result is the introduction of a proportionate framework that benefits consumers, the sector and the wider UK economy.

What’s the biggest misconception about BNPL today?

While most people see the benefits of BNPL offering a much-needed, inexpensive deferred payment option for people who might want or need some assistance when managing their spending, some misconceptions remain. 

The biggest being that it encourages people to overspend.

Our research has consistently demonstrated that the majority of consumers use it to spread the cost of payments (53%) and 35% use it to help manage their budget.

This is further evidenced by the fact that, at Clearpay, 96% of instalments globally are paid on time, and 90% are paid using a debit card, demonstrating that people are using money that they have to make payments. 

Where does BNPL fit into the future of UK fintech?

BNPL has provided a blueprint of how a financial services product can evolve from being a fintech disruptor to a mainstream tool used by millions.

In BNPL’s case, consumers value the flexibility it gives them, allowing them to spread costs without incurring interest. 

BNPL regulation has accelerated the conversation around modernising the UK’s Consumer Credit Act, which has been in place for more than 50 years.

Moving away from prescriptive rules to an outcomes-focused approach will create more room for responsible innovation while ensuring high standards of consumer protection.

This is good news for the wider industry. 

If the UK continues to demonstrate that it can strike that balance, it will retain its status as an attractive place for fintech businesses to invest, innovate and develop the next generation of financial services.