The Bank of Italy has published a study of household demand for buy now, pay later services, based on a nationally representative 2022 survey of 9,641 households. Adoption stood at about 4% and was concentrated among younger, financially sound and digitally engaged households. Once digital behavior was considered, income and other conventional indicators of financial vulnerability had limited explanatory power. Buy now, pay later use was strongly associated with revolving credit cards, prepaid cards and lower cash expenditure, indicating that it generally complemented rather than replaced existing deferred payment and digital payment products. Credit and prepaid cards were used to activate 35% and 33% of services, respectively. The baseline analysis found no significant link to rejected consumer credit applications, although an alternative weighting method indicated that constrained households may use the product as another source of credit. The findings reflect 2022 conditions, while market estimates show Italian transaction volumes rose from 3.9 million in 2021 to 32.4 million in 2024 and transaction value increased from EUR 1 billion to EUR 6.8 billion. More recent survey evidence indicates use may be spreading to financially vulnerable groups. The study highlights monitoring, credit reporting and financial education as the second Consumer Credit Directive brings buy now, pay later within scope and strengthens disclosure and creditworthiness assessment requirements.
2026-09-08Bank of Italy
Bank of Italy publishes study finding buy now pay later adoption at 4% of households in 2022
A Bank of Italy study found that about 4% of Italian households used buy now, pay later services in 2022, with adoption concentrated among younger and digitally engaged users. The services generally complemented revolving credit cards and other digital payment products rather than replacing them. Rapid subsequent market growth and indications of use among more vulnerable households reinforce the relevance of new European disclosure and creditworthiness requirements.