UK's New Labour Government Set to Regulate the "Buy Now, Pay Later" Industry

The new Labour government in Britain is set to update its plans to regulate the "buy now, pay later" (BNPL) industry. According to a Treasury spokesperson, the government will announce the new regulations shortly. Tulip Siddiq, the new economic secretary to the U.K. Treasury, emphasized the importance of regulating BNPL products to protect consumers and bring certainty to the sector. The move follows delays in the BNPL legislation roadmap, initially planned in 2021.

The Labour government aims to apply existing regulations for mainstream lenders to BNPL plans, ensuring greater information disclosure and supervision. Major BNPL firms like Klarna and Block have expressed concerns that stringent regulations might push consumers towards more expensive credit options. However, companies like Clearpay and Klarna welcome appropriate regulation to protect consumers and set high industry standards.

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Big Changes for Revolut:

Just a week ago, the global fintech with over nine million UK customers and 45 million globally announced that it received its UK banking licence with restrictions from the Prudential Regulation Authority (PRA), the regulator responsible for overseeing the UK banking sector.

Until the mobilisation stage is completed and the UK Bank is launched, Revolut’s UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the FCA, where their funds are safeguarded in accounts in line with the Electronic Money Regulations 2011.

Additionally, Revolut announced a partnership with Paysafe to enable cash deposit services for its customers and clients in the UK. This new Cash Deposits solution offers Revolut users a secure and efficient way to manage their cash money, enhancing their overall banking experience. Both companies emphasize the importance of complying with local regulatory requirements and industry laws, ensuring a reliable and secure service for their users.

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FinTech Investment Hits $15.9 Billion in the First Half of 2024

Despite a 19% dip from the latter half of 2023, the FinTech sector continues to thrive with significant investments across the globe.

🔺 Here are some key highlights:

🇺🇸 USA: Leading with $7.3 billion across 599 deals.

🇬🇧 UK: Secured $2 billion across 183 deals.

🇮🇳 India: Attracted $837 million through 78 deals.

🇨🇳 China: Drew $589 million across 30 deals.

🇩🇪 Germany: Saw $462 million invested across 37 deals.

Innovate Finance 's recent data reveals a significant investment gap for female founders in the UK. Fintechs founded or co-founded by women received only £136 million (approximately $173 million), accounting for a mere 6.7% of the total investment in H1 2024.

Fintech deals

Total amount of €27.4m raised with:

4️⃣ deals in the UK 🇬🇧

1️⃣ deal in Latvia 🇱🇻

Latest News

• Cash App to exit UK as "deprioritises global expansion": The peer-to-peer payment app said it was exiting the UK as it wanted to focus on its domestic US market. Read more
• Transactions database TigerBeetle raises $24m: Financial transactions database TigerBeetle has raised $24 million in a Series A funding round led by Spark Capital. Read more
• Egypt’s MNT-Halan expands into Turkey with acquisition of Tam Finans: Egyptian fintech MNT-Halan has acquired commercial finance company Tam Finans and its $300 million loan book to expand its operations into Turkey. Read more

Stay tuned for more updates and insights into the dynamic world of fintech.