Bank of Italy reviews Buy Now Pay Later risks and highlights European Consumer Credit Directive coverage from November 2026

The Bank of Italy published a financial stability and supervision note on the rapid growth of Buy Now Pay Later (BNPL) in Italy, flagging vulnerabilities that are hard to assess given limited data on volumes and riskiness. It also summarises regulatory developments, including the extension of EU consumer credit rules to most BNPL transactions. Survey evidence cited in the note indicates that BNPL use rose from 4 per cent of Italian households in 2022 to 30 per cent in 2025, with around two thirds using it only occasionally. In line with findings from analyses of the United States and Europe, BNPL use is increasingly concentrated among financially vulnerable groups, including households with medium-low incomes, limited wealth and pre-existing debt, and is common among borrowers already behind on repayments. From November 2026, the new European Consumer Credit Directive (CCD2) is expected to apply to most BNPL transactions, introducing stricter transparency requirements for pre-contractual and contractual information and more rigorous creditworthiness assessments aimed at reducing over-indebtedness and repayment difficulties.