The Netherlands Authority for the Financial Markets (AFM), concerns have been raised over the access of minors to ‘Buy Now, Pay Later’ (BNPL) services. Despite active measures taken by BNPL providers—Billink, In3, Klarna, and Riverty, including the establishment of a Code of Conduct to enhance consumer decision making and protect vulnerable groups, underage users are slipping through the checks.
The Code of Conduct, introduced late in 2023, stipulates a full disclosure of costs, conditions, and payment obligations to ensure consumer transparency and safeguard minors and financially vulnerable individuals from potential risks. Nevertheless, a glaring gap has been revealed as the AFM disclosed that in 2023 alone, approximately 600,000 transactions were associated with underage users, uncovering a loophole in the system where age is not verified with each transaction.
The AFM is calling for urgent and mandatory identity and age verification processes for every BNPL transaction.
