The Dutch Authority for the Financial Markets published research on the Dutch Buy Now, Pay Later (BNPL) market, finding continued growth alongside persistent payment problems and calling for stronger consumer protection. It supported tightening the transaction-value thresholds that determine when creditworthiness assessments and a Bureau Credit Registration (BKR) check are required, warning that most BNPL transactions with payment problems would otherwise fall outside mandatory checks under the incoming rules. BNPL providers processed around 53 million transactions in 2024 with a total value of EUR 5.1 billion, up about 17%. Providers issued around 6.9 million notices of default, charged reminder fees around 1.8 million times, and transferred about 0.6 million transactions to debt collection agencies. Analysis of bank data indicated signs of weak financial health among some BNPL users under 35, including that one in six is overdrawn on average seven to eight days a month and cancels or misses about ten direct debits per year, with these indicators worsening as use of pay-later increases. The AFM also highlighted that large e-commerce platforms offering pay-later options show similar risk patterns, with Amazon, Bol and Zalando reporting 4.4 million users in the Netherlands in 2024 versus 5.5 million users across Billink, In3, Klarna and Riverty, and around 0.9 million platform customers paying reminder fees, and it advocated that platforms join the BNPL code of conduct. The BNPL sector and large e-commerce platforms are expected to come under AFM supervision by November 2026 as a result of implementing the revised Consumer Credit Directive. The framework will include legally required age verification, which the AFM wants to take effect as soon as possible to prevent minors from using BNPL.
Dutch Authority for the Financial Markets 2025-07-01
Dutch Authority for the Financial Markets backs lowering the EUR 250 threshold for BNPL creditworthiness and BKR checks as use grows 17%
The Dutch Authority for the Financial Markets (AFM) published research on the Dutch Buy Now, Pay Later (BNPL) market, highlighting growth and persistent payment issues, advocating for stronger consumer protection. The AFM supports tightening transaction-value thresholds for creditworthiness assessments and Bureau Credit Registration checks, noting that most problematic transactions would evade mandatory checks under new rules. The BNPL sector and large e-commerce platforms are expected to come under AFM supervision by November 2026, focusing on age verification to prevent minors from using BNPL services.