'Buy Now, Pay Later' (BNPL) has become a staple of online payments. The ability to pay later is popular with consumers. In 2024, the Cantonal Court asked the Supreme Court when BNPL services could fall under the European Consumer Credit Directive (also known as CCD1). In response to those questions, the Supreme Court in turn referred questions to the EU Court of Justice. On June 27, 2025, that clarity finally arrived: the Supreme Court considered that BNPL services qualify as credit under certain circumstances, and thus these services fall under the operation of the Directive and its obligations. Think information obligations, creditworthiness testing and transparency about costs.
The Supreme Court confirmed that having to pay interest or collection costs in case of late payment does not in principle count when assessing whether there is "free" credit, which credits do not fall within the scope of the Directive. Thus, such circumstances are not directly relevant in assessing whether the BNPL provider is covered by the Directive. But: if the provider's business model is precisely based on the structural collection of these costs, for example because consumers are expected to pay late frequently, then these costs do count. In that case, the Directive is applicable because there is no question of a credit with no or only insignificant costs.
If the Directive applies (and no other exceptions apply), the same rules apply as for traditional lenders. This entails the following obligations, among others:
Licensing requirement: In principle, lenders need a license from the AFM in order to provide credit.
Precontractual information duty: The consumer must be informed about the terms of the credit within "considerable time" before the conclusion of the credit agreement. Whether there is "considerable time" should be assessed in light of the circumstances of the case. The Supreme Court, in its June 27, 2025 ruling, considers that if a consumer immediately decides to buy a product and takes out a credit almost immediately in the process, that does not automatically mean that this does not mean that the information was provided well in advance.
Credit check: The provider must check beforehand whether the consumer can carry the credit.
Advertising and marketing: Specific rules and warning texts apply to credit advertising and marketing.
Fees: There are specific rules about what credit fees may be charged and how high the credit fee may be.
BKR: Lenders must be affiliated with the BKR to register certain loans.
KiFID: Lenders must have their own complaints procedure and join the KiFID Disputes Committee.
Apart from the obligations under the Directive, lenders must also comply with the requirements of the Money Laundering and Terrorist Financing Prevention Act (Wwft), which means they must have a know-your-customer (KYC) process and report unusual transactions to the FIU.
The Supreme Court emphasized that the court must test ex officio whether the lender has assessed the consumer's creditworthiness, i.e., even if the consumer himself does not invoke it. In doing so, the court must consider all the circumstances surrounding the conclusion of the agreement. In contrast, the Supreme Court considers that the court is not obliged to assess ex officio whether the lender should not have entered into the credit agreement under the applicable rules. This is because this rule does not derive from CCD1.
The future of BNPL: stricter rules under CCD2
CCD1 has been revised. The new directive, known as CCD2, is expected to take effect in the Netherlands in the fall of 2026. It aims to better protect consumers from the risks of consumer credit, including BNPL services.
It is striking that the Netherlands chooses a strict implementation of the Directive. Thus, no use is made of optional exceptions that other member states do allow for BNPL providers, such as an alleviated regime for credits under 200 euros. This means that BNPL providers in the Netherlands will soon fall under a strict regime.
No exemption for small credits: The exemption for credits with a lower limit of 200 euros will expire. Thus, small credits are also covered by the scope of CCD2. BNPL providers are thus explicitly classified as lenders unless another exception applies.
Reduced pre-contractual information requirements: For BNPL credit granted without interest or other charges, below €200, or repayable within three months where only insignificant charges are due, member states can opt for a reduction of some obligations, such as pre-contractual information duties. The Dutch legislator has chosen to apply only part of this lightened regime to credits without interest or other costs or with a maturity of 3 months with only insignificant costs.
Age verification: BNPL may no longer be offered to minors. Providers must verify the consumer's age before extending credit.
Ex officio application of the rules: Courts will likely be required to review ex officio whether the lender should not have entered into the credit agreement with the consumer based on its creditworthiness test. This is because, contrary to the Supreme Court's ruling, this rule stems from CCD2.
In the fall of 2026, the Dutch implementation of CCD2 should go into effect.
The judgment shows that there are circumstances under which BNPL service providers offer credit and must comply with the obligations of the Directive. It will now first be up to the district judge to decide whether this particular case with Afterpay involves the provision of credit that falls within the scope of CCD1.
