Buy Now, Pay Later
Within weeks, consumers will be able to make purchases in physical stores that they can pay for later. Until now, back payment, or Buy Now, Pay Later (BNPL), has been available primarily online through Klarna. Stores with an Adyen debit card machine can offer this option, including in Europe, Australia and North America, with a total of 450,000 terminals.
Concerns about financial risk with retrospective payments
But not everyone agrees with the new option of being able to pay in-store in arrears. The Dutch Banking Association (NVB) has indicated that financially vulnerable people are more likely to get into trouble with deferred payments. That's why there are plans for better and stricter age controls to prevent young people from using BNPL.
Age verification and payment risks
Klarna ensures that young people cannot slip into physical stores either; a credit bureau checks their age. According to Klarna, less than 1 percent of users cannot repay their purchase. Research by the Financial Markets Authority (AFM) showed this spring that 13 percent of BNPL users face dunning charges, 4 percent of whom are even referred to a collection agency.
Source: NU.nl
