KAREN JOY BACUDO

Finance Editor

Ecommpay has urged merchants to check whether their Buy Now, Pay Later providers meet new UK regulatory requirements as full Financial Conduct Authority supervision begins for interest-free instalment products.

Lenders offering Deferred Payment Credit must now be authorised by the FCA or registered under the Temporary Permissions Regime to continue operating legally. Although the rules apply directly to lenders rather than retailers, they will affect how BNPL products are presented and managed at checkout.

Under the new regime, lenders must carry out affordability checks on every transaction, with the depth of those checks linked to risk. Purchases under £50 are no longer exempt. Lenders must also give customers clear upfront information on payment dates, amounts and the consequences of missed payments.

New arrears rules require prompt contact with customers who miss payments, reasonable notice before enforcement action, and signposting to free debt advice. Consumers with eligible complaints about Deferred Payment Credit agreements can also take their cases to the Financial Ombudsman Service.

Ecommpay warned merchants not to assume they are insulated from the consequences of a lender failing to meet the new standards. Problems involving a BNPL option can still damage the retailer’s customer experience and brand.

“BNPL has always been credit – regulation is simply catching up,” said Alpa Jotangia, Head of Compliance at Ecommpay.

“And critically it isn’t just a technical change for BNPL providers; it changes the checkout conversation for everyone. The reality is that consumers don’t separate the lender, the payment provider and the retailer in their minds. They remember the checkout experience, the refund experience, and how they were treated when something went wrong. If a BNPL partner falls short, it’s the merchant’s brand that’s likely to be impacted.”

Merchant checks

Retailers using BNPL at checkout should verify that each provider is either FCA-authorised or registered under the temporary regime. They should also review the customer journey to assess how repayment terms are displayed, how affordability checks are handled, and what happens when a customer returns an item or falls into arrears.

Merchants should also ask lenders how they meet their regulatory duties, including disclosure, refund handling and support for vulnerable customers. Ecommpay presented those steps as practical checks for retailers reviewing their existing payment setup.

The changes mark a significant shift for a market that expanded quickly under lighter oversight. BNPL products have become a common feature of online checkout in recent years, particularly for lower-value retail purchases, and the move brings them more closely into line with other forms of consumer credit.

For lenders, the rules introduce operational demands around underwriting, disclosures and arrears management. For merchants, the concern is less about direct regulatory exposure and more about whether a provider’s compliance processes introduce delays, confusion or disruption at the point of sale.

Jotangia said the sector would need to balance consumer safeguards with a simple user experience.

“The payments industry has spent years removing friction from checkout, but friction is not always failure when it comes to offering credit – sometimes it’s protection,” she said.

“The winners in the regulated BNPL market will be the providers that make responsible credit feel clear, intuitive and proportionate, and that’s where payments expertise matters. Payments service providers like Ecommpay can help merchants ensure their payment journeys work smoothly alongside compliant BNPL offers, delivering a checkout that converts. The next phase of BNPL won’t be defined by who has the most prominent button at checkout – it will be defined by trust.”

Administrators shut down the Oxford brand at the Westgate centre in April, one of 33 that shut down nationwide.

Best known for its premium leather footwear and handbags, Russell & Bromley fell into administration earlier this year with debts of £59.3 million and losses reaching £20 million over the past two years.

The historic retailer, founded in Sussex in 1880, operated stores nationwide but its financial pressures proved insurmountable, according to administrators Will Wright and Chris Pole of Interpath Advisory, who were appointed in January.

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A spokesman for Interpath Advisory said: “Following the announcement regarding the sale of the Russell & Bromley brand and certain assets to Next plc, the joint administrators can confirm that a phased closure programme for the remaining Russell & Bromley stores is now complete.

“All stores that did not transfer to Next as part of that transaction closed.

“Regrettably, these closures mean that the majority of employees working in the non-transferring stores have been made redundant.

“The administrators and their teams are engaging closely with all affected staff and will be providing support throughout the process, including assisting individuals in submitting claims to the Redundancy Payments Service.”

At the time of administration, Russell & Bromley owed £59.3 million.

A total deficiency of £35.7 million is estimated, with assets totalling £8 million available for preferential creditors and £5.6 million for unsecured creditors.

The company also owed £3.2 million to HMRC.

Administrators described the final years of the business as deeply challenging.

The administrators said: “The group was relatively highly loss-making, with these losses due to a combination of falling sales, increasing operational costs and a relatively high fixed cost base.

“Further to this, the wider UK market has been difficult for retail businesses with challenging trading conditions characterised by high inflation and suppressed consumer demand.”

In an effort to fund continued trading, Russell & Bromley had sold off several freehold properties.

However, even these measures could not stem the mounting losses.

The company had drawn £2.1 million on a trade finance facility before entering administration.

NatWest exercised its set-off rights immediately upon appointment of the administrators, using the company’s remaining cash to clear its outstanding debt with the bank.

Most of the company’s 36 stores did not survive.

Only three stores—two in London and one in Kent—were included in a pre-pack deal with Next, which acquired the brand name and select assets.

The closure resulted in 400 job losses.

Interpath anticipates that a dividend may eventually be paid to unsecured creditors but has not yet determined the potential value.

The administrators said: “Based on current estimates, we anticipate that unsecured creditors may receive a dividend.

“We have yet to determine the amount of this, but we will do so when we have completed the realisation of assets and the payment of associated costs.”

Technology and learning specialists are urging employers to treat AI literacy and online security as core skills for young people entering work. They argue that human judgment and digital confidence now sit alongside technical knowledge for those starting their careers.

World Youth Skills Day has highlighted how AI and cyber risks are reshaping expectations for school leavers, apprentices and graduates. The focus has moved beyond narrow coding or software skills.

For Frank Jaquez, Head of Talent and Culture at learning company Skillsoft, the shift is as much about human strengths as digital tools. He points to the growing use of AI across roles and sectors, from office work to frontline services.

“World Youth Skills Day is a reminder that preparing young people for the future of work is about more than technical skills alone. As AI becomes embedded in everyday work, young people will need digital and AI literacy alongside the human capabilities technology cannot replicate – critical thinking, communication, collaboration, creativity and, above all, judgment,” said Frank Jaquez, Head of Talent and Culture at Skillsoft.

Jaquez said basic familiarity with AI tools is no longer enough. Early-career workers, he argued, must understand how to question outputs, check sources and weigh trade-offs when using machine-generated content.

He draws a sharp line between automation and responsibility.

“AI can automate routine tasks and help people become productive faster, but it still requires context and human oversight. Judgement matters. Young people entering the workforce need to know not just how to use AI, but when to challenge its outputs, how to apply their own knowledge, and where their perspective adds value that a model cannot,” said Jaquez.

The labour market remains difficult for many young people. Jaquez cited a recent PwC Youth Employment Index showing that one in eight 16- to 24-year-olds in the UK are not in employment, education or training.

“At the same time, young people are building careers in a rapidly evolving and tight labour market, with one in eight 16- to 24-year-olds currently not in employment, education or training. As AI accelerates change, the challenge is no longer simply learning new technical skills but continually developing both the technical capabilities and human strengths that drive performance. Employers have a real role to play here – strengthening the skills supply chain by giving young people clear pathways, honest conversations about how AI may reshape their roles, and stretch opportunities to build capability. Growth doesn’t always look like a promotion; sometimes it looks like a new project, a harder problem, or a skill that opens the next door,” said Jaquez.

Leadership behaviour also comes under scrutiny. Jaquez argues that senior staff must share their own experiences with AI tools so younger workers feel able to experiment and admit mistakes.

“Leaders also have to model the behaviour they want to see. When senior people share how they’re actually using AI – what worked, what didn’t, where they had to apply their own judgment – it creates the psychological safety for younger employees to experiment and learn out loud. And learning has to live inside the moments that already matter: working through a difficult challenge, presenting an idea, collaborating across teams, using AI to solve a problem, or stepping into a responsibility for the first time. When it feels like part of the work rather than added to it, curiosity and continuous learning stop being buzzwords and start becoming habits. That’s how we help young people grow alongside AI – and build careers that can keep evolving with it,” said Jaquez.

Alongside workplace skills, security specialists warn that everyday digital habits can expose young people to fraud and misinformation. AI, they say, now shapes both sides of the online safety equation.

Adrian Podkaminer, Head of Security at digital marketplace G2A.COM, said “digital confidence” is becoming as important as academic or vocational qualifications.

“Today, digital confidence is one of the most important skills young people can develop. World Youth Skills Day is not just about preparing them for future jobs; it’s about equipping them with skills to navigate the online world they’re already part of. From shopping online and using AI to study, create content or apply for jobs, to deciding what information to trust, being confident online is part of everyday life.

“AI is increasingly shaping how young people learn and create, whether that’s using chatbots to summarise revision notes or lecture recordings to generate creative ideas. But the same technology is also making online scams harder to spot, with AI-generated phishing emails, convincing deepfakes and fake messages that can appear genuine at first glance.

“That’s why being confident online today is about more than simply using technology. It’s about questioning what you see, protecting your personal information and building simple habits, such as using strong passwords and enabling multi-factor authentication, that make it much harder for criminals to take advantage.

“At G2A, we see firsthand how AI is transforming both digital commerce and cybercrime. As cybercriminals rapidly adapt to new tools and changing online behaviours, sharing practical advice is just as important as developing effective security measures. Informed users remain one of the strongest defences against online threats. The next generation won’t be defined by how quickly they adopt new technology, but by how confidently they can separate what’s helpful from what’s harmful,” said Adrian Podkaminer, Head of Security at G2A.COM.