The Netherlands Authority for the Financial Markets (AFM) has raised significant concerns regarding the introduction of "buy now, pay later" (BNPL) options by payment services Klarna and Adyen in physical retail stores. The Tweede Kamer, the Dutch parliament's lower house, has unanimously passed a motion to ban these options in physical locations, reflecting growing anxiety about the potential for increased consumer debt. Currently, BNPL options are prevalent in online shopping, but the proposed in-store implementation could lead to financial pitfalls for consumers who may not fully understand the implications of borrowing money at the point of sale. AFM officials highlight that the lack of rigorous credit checks could result in consumers overextending themselves financially, especially when they are unaware of their total debts. With new European regulations set to impose stricter oversight in 2026, the Dutch government is urged to act swiftly to protect consumers from the risks associated with BNPL services.
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