The Dutch government has taken steps to curb the expansion of buy now, pay later (BNPL) services into brick-and-mortar stores, urging Klarna to reconsider its plans for physical retail locations.
In a letter addressed to the Dutch parliament, Finance Minister Eelco Heinen expressed concerns that BNPL services, which have become widespread in online shopping, could pose risks to consumers if introduced into physical shops. Heinen stated, “Although an outright ban would be unfeasible due to EU regulations, it is crucial to address the financial risks associated with BNPL that could worsen debt issues for vulnerable populations.”
In September, Klarna announced a partnership with Dutch firm Adyen to implement installment payments at in-store terminals across Europe, North America, and Australia, with pilot programs already underway.
Following Heinen’s remarks, Klarna responded to Reuters, emphasizing that any discussions about regulating BNPL should also consider the dangers of more harmful credit options, such as credit cards. According to Klarna, “In the Netherlands, 99.4 percent of Klarna loans are repaid in full, demonstrating Dutch consumers’ responsible use of our services.”
The government has also engaged with other providers, including Zalando and Amazon, which have not yet committed to a code of conduct that mandates age verification for customers.