Minors in Belgium will soon be barred from using Buy Now Pay Later apps, including popular credit-based services like Klarna.
The announcement came on Monday from Consumer Protection Minister Rob Beenders (Vooruit) . The minister said that minors will no longer be able to take out credit. "Until now, it was far too easy for them to do so, even though it was already banned."
BNPL platforms allow users to take out short-term loans for online purchases, but concerns have grown about the risks. One in five borrowers ends up being contacted by a debt collection agency after failing to keep up with repayments, and a third of them are under 24.
Beenders said the law must be updated so that all BNPL providers are fully covered by consumer credit rules, which would stop them offering services to anyone under 18.
Firms that break the rules could face fines of up to 800,000 euros or 6% of their annual turnover.
"If BNPL services fail to comply with the legislation, we will require them to use identification tools such as ItsMe or MyGov," the minister warned.
