In recent years, Buy Now Pay Later (BNPL) has experienced significant growth, becoming one of the most popular payment methods in e-commerce and, more broadly, across the digital marketplace. The ability to spread payments through a simple, fast and, in most cases, interest-free solution has driven the widespread adoption of this model, making it an integral component of many operators’ commercial offerings.
However, the rapid evolution of the market has highlighted the need for a regulatory framework capable of ensuring a higher level of consumer protection. Against this backdrop, the new Consumer Credit Directive (EU) 2023/2225 (CCD2) is set to significantly reshape the regulatory landscape, including the Buy Now Pay Later sector.
Among the key compliance requirements introduced by the reform are:
- the review of compliance frameworks and operational processes;
- the implementation of consumer creditworthiness assessments;
- the update of contractual documentation and pre-contractual disclosures;
- compliance with the implementing provisions to be issued by the Bank of Italy as part of the national transposition of the Directive.
The European legislator aims to strike a balance between two seemingly competing objectives: on the one hand, strengthening consumer protection in relation to increasingly widespread forms of financing; on the other, preserving the simplicity, speed and accessibility that have made Buy Now Pay Later such a successful payment solution.
In AziendaBanca, Angelo Messore examines the key innovations introduced by the CCD2 and analyses the operational implications of the reform for financial intermediaries, fintech companies and Buy Now Pay Later service providers.
Read the full article on AziendaBanca >
