Netherlands Ministry of Finance approves proposal to regulate Buy Now Pay Later under AFM supervision and ban under-18 use

The Netherlands Ministry of Finance announced that the cabinet has agreed a proposal to tighten regulation of Buy Now, Pay Later (BNPL) and strengthen consumer protection, particularly for younger users. The package implements the European Consumer Credit Directive II (CCDII) and would bring BNPL providers into the perimeter of financial supervision. With CCDII implementation in November 2026, BNPL providers would become subject to the Financial Supervision Act and need to apply for an Autoriteit Financiële Markten (AFM) licence to issue credit. Creditworthiness assessments would become mandatory before granting credit, including a BKR check. The proposal would also prohibit BNPL for consumers under 18, require stronger age verification, and introduce stricter advertising rules, including banning adverts that wrongly suggest credit improves a consumer’s financial situation. Additional requirements would apply to foreign providers, including registering credits with BKR and applying Dutch lending standards, and credit card providers offering monthly repayment would also face new rules with specified exceptions such as continuing to charge a monthly fee. The CCDII measures must take effect no later than 20 November 2026. Until then, the government plans to continue discussions with stakeholders and pursue BNPL self-regulation via a code of conduct, while the cabinet has sent the CCDII implementation proposal to the Council of State for advice.