Starting November 20, 2026, the Buy Now, Pay Later (BNPL) sector in Italy will face stricter regulatory oversight under the European Consumer Credit Directive (CCD2).
Companies including PayPal (NASDAQ: PYPL), Klarna, and Scalapay must now comply with more stringent obligations regarding consumer credit assessments, information clarity, and commercial promotion.
The new regulatory framework follows Italy’s adoption of the European directive via legislative decree 212 on December 31, 2025. Under these rules, installment payments are officially recognized as a form of credit, even in cases where no interest is charged. This classification imposes greater responsibilities on both the service providers and the retailers offering these payment options.
One major change involves how creditworthiness is evaluated. Before approving an installment plan, operators will be required to verify that a consumer has the ability to repay the amount owed. If an analysis creates doubt regarding a customer’s capacity to reimburse the debt, the request can be rejected to prevent those already in financial difficulty from accumulating further debt.
The regulations also target how these services are marketed. According to Gazzettino, companies will be prohibited from presenting installment plans as a simple price division while omitting the fact that the transaction constitutes credit. Misleading messages regarding costs or advertisements suggesting that incurring debt can improve a person’s economic situation or lifestyle will be banned.
Consumers using BNPL services will receive standard consumer credit protections, including the right to withdraw from agreements, access to information prior to signing, and support for those struggling to make repayments. Data from the Bank of Italy shows use of these services has risen, with families using BNPL at least once increasing from 4% in 2022 to 30% in 2025. Usage is most frequent among households with medium-low incomes, low assets, and existing debts.
While the rules change how credit is granted, how information is provided, and how services are advertised, the BNPL model itself will not be prohibited. The companies involved have said that their products will remain available and that user experiences will be updated to meet the legal requirements.
