Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) is a form of deferred payment whereby consumers often pay for their purchase after receiving it, either in one lump sum or in installments. This payment method is rapidly gaining popularity, especially among young people.

Advantages for consumers

Flexibility: Deferred payment in installments can provide financial breathing space.
Security: Pay after you have received the purchase.
Accessibility: Fewer creditworthiness requirements than for regular loans, allowing more people to use it.

Risks for consumers

Accumulating debt: Deferred payments can accumulate into excessive and unmanageable debt that consumers are then unable to repay on time.
Confusing: Deferred payments with multiple different providers can become confusing for consumers.
High costs in case of default: If you do not pay your deferred payments on time, you will have to pay high additional costs, such as fines, collection costs, and interest.

The Financial Markets Authority (AFM) emphasizes that paying in arrears is a form of borrowing. Consumers should be aware of this and carefully assess their financial situation before using this payment method.

More information: Buy Now, Pay Later – AFM.nl (in Dutch).

For merchants

BNPL can offer advantages for online stores:

More freedom of choice and customer confidence;
Higher conversion rates because more customers can pay;
Supports customers’ right to pay a maximum of 50% down payment.

It is advisable for merchants to work with BNPL providers who offer responsible credit and are transparent about costs and conditions.

Regulation and supervision

By November 2026 at the latest, providers of Buy Now, Pay Later and large e-commerce platforms will be subject to supervision by the AFM, as part of the revised Consumer Credit Directive(opens in new window) (in Dutch). Important changes include:

Mandatory creditworthiness check, even for low purchase amounts;
Age verification to exclude minors;
Affiliation with BKR to better monitor debts.