Four buy now, pay later firms change ‘potentially unfair terms’

The buy now, pay later market is worth an estimated £6.4bn a year in the UK. Photograph: Artur Szczybylo/Alamy

The major buy now, pay later companies Clearpay, Klarna, Laybuy and Openpay have agreed to change “potentially unfair and unclear” terms and conditions after an intervention from the financial regulator.

The Financial Conduct Authority (FCA) said it was able to use consumer law to enforce the changes. However, the regulator acknowledged that it was still lacking the powers to regulate the sector to the same standard as other consumer credit companies.