Neil Kadagathur, Co-Founder and CEO of Creditspring, comments: “Ever since payday loans have been driven out of the mainstream, BNPL has been viewed as the new wild west of the borrowing industry.

“Regulation is welcome but the misconceptions amongst borrowers, that BNPL is risk-free or isn’t a form of borrowing that can lead to debt, are a much bigger issue. Regulation won’t go far enough - lenders need to ensure they develop awareness amongst borrowers of the risks that BNPL poses.

“Borrowers must be protected – currently, they are in real danger of falling into another credit trap as they continue to rely on BNPL as a crutch to struggle through until payday. Worst-case scenario is that borrowers can end up receiving a knock on the door from a debt collector, but currently the vast majority are completely unaware this is even a possibility.”