The Dutch government is seeking to prevent the rollout of „buy now, pay later” services in physical retail outlets due to the financial risks they pose for consumers, according to a letter sent by Finance Minister Eelco Heinen to parliament on Tuesday, Reuters reports.
„Buy now, pay later” (BNPL) schemes surged in popularity for online purchases since the COVID-19 pandemic and allows consumers to split payments over time into smaller, interest-free installments.
These loans are often provided by digital lenders such as Sweden’s Klarna.
Although an outright ban would be „unfeasible” because of EU regulations, the Dutch government believes that BNPL services can trigger earlier and larger debts, particularly among younger consumers, Heinen said in the letter, co-signed with the Minister for Legal Protection Teun Struycken.
The government urged Klarna to refrain from further expanding its BNPL services in physical stores in the Netherlands, according to the letter.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
