The Dutch government has expressed intentions to restrict BNPL services in physical retail locations due to the financial dangers these schemes pose, especially to younger consumers.
According to The Paypers, amid concerns over escalating debts triggered by BNPL services, the government, while stopping short of a total ban—citing EU regulatory constraints—has strongly advised Klarna, a leading digital lender from Sweden, against expanding their BNPL offerings in the Netherlands’ brick-and-mortar stores.
BNPL services, which gained significant traction during the COVID-19 pandemic, allow consumers to defer payments into interest-free installments. This convenience, however, comes with hidden costs that are often overlooked by consumers. The Dutch government’s move aims to temper the rapid adoption of BNPL solutions in offline stores, as these platforms could potentially heighten financial risks for users.
Further discussions have occurred between the Dutch authorities and other BNPL providers like Zalando and Amazon. Notably, these companies have not yet committed to a code of conduct which includes age verification protocols for all users, a step that could mitigate some risks associated with BNPL services.
This regulatory scrutiny isn’t isolated to the Netherlands; it is part of a broader trend where BNPL services are facing increased oversight. A recent study by the Lending Standards Board (LSB) in early 2025 highlighted consumer unawareness regarding the true costs associated with BNPL products. The study revealed that just over half (52%) of BNPL users are aware of potential late payment fees, and a startling 15% have already incurred such fees—with the percentage rising to 22% among those with poor credit scores.
This proactive stance by the Dutch government is a clear signal to the FinTech sector that regulatory frameworks will continue to evolve to protect consumers, especially in markets susceptible to rapid technological advancements and the challenges they bring.
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