Buy Now, Pay Later (BNPL) is becoming increasingly popular in the Netherlands, according to the Netherlands Authority for Financial Markets (AFM). The watchdog saw 17 percent more transactions last year and warns that there are still many payment problems. Controls need to be stricter.
Buy Now, Pay Later (BNPL) allows buyers to pay for a purchase later. The payment option, offered by companies like Klarna, is growing in popularity.
But the AFM is critical. According to the watchdog, it is not being checked sharply enough whether someone can afford the product, especially for amounts up to 250 euros. The number of people with payment problems due to BNPL was lower in 2024, but remains high.
Last year, BNPL providers processed approximately 53 million transactions, worth 5.1 billion euros. That is a growth of 17 percent compared to 2023. The providers have identified nearly seven million cases of customers with payment problems. In 1.8 million cases, this led to reminder fees. About 600,000 transactions were transferred to a collection agency.
The AFM is particularly concerned about the target group up to 35 years. According to their analysis, these users of BNPL are in poor financial condition. On average, one in six users is in the red for seven to eight days a month.
AFM wants to shift the limit of 250 euros
A deferred payment of a purchase above 250 euros receives a creditworthiness assessment and BKR check. The AFM wants this to also apply to lower amounts. Last year, in nine out of ten cases of payment problems, it involved a lower amount.
By November 2026 at the latest, BNPL providers such as Klarna, Amazon, and Bol will be under the supervision of the AFM. This is the result of the implementation law of the revised consumer credit directive, which controls BNPL more strictly.
For example, there will be an age verification so that minors can no longer use it. The limit for the credit check remains the same for the time being.