Regulatory Alerts2024-04-09
Buy Now, Pay Later Market Update
The Dutch Authority for the Financial Markets (AFM) issued this market update to assess the evolution of the BNPL sector ahead of its regulation under the revised Consumer Credit Directive by November 2026. The report highlights significant growth in transaction values and a concerning rise in usage among minors and young adults, who face higher risks of debt accumulation and collection costs. It further identifies risks related to the use of BNPL for non-returnable or addictive products and notes high return rates, particularly in the fashion industry.
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