Dutch online liquor stores should stop using BNPL

By: Trademagazin editor Date: 2022. 12. 21. 09:20

The Dutch government wants online liquor stores to stop offering ‘buy now, pay later’ as a payment method. If they do not find alternative payment methods, the government will come up with legal measures. The payment method lowers the threshold to buy alcohol.

Many liquor stores in the Netherlands have implemented BNPL providers, such as Klarna and Riverty, into their online store. Currently, Dutch online stores are legally required to give customers the option to pay later. Experts find this concerning, as the alcohol legislation in the country is geared towards making buying alcohol more difficult. However, BNPL providers lower that threshold.

“I share the concern that this payment method can encourage (vulnerable) target groups to order more alcohol and thus increase the risk of alcohol consumption and alcohol-related harm”, said State Secretary of Public Health Maarten van Ooijen. “I have already had signals from some online liquor stores that they are going to look at other options, so that they no longer have to use the BNPL payment services within the legal framework.” If the sector does not put an end to BNPL payments, the government wants to take legal measures.

It is not the first time for BNPL payment methods to be critiqued. According to a study in 2021, 36 percent of Gen-Z used these payment methods that year, which was a six-fold growth since 2019. Critics are concerned that younger people are more vulnerable to potential debt.

Up to 6% of people aged 18-24 end up in collection procedures after using BNPL apps.

In the Netherlands, the Financial Markets Authority wants BNPL-apps to be more regulated, as 20 percent of users are confronted with reminder costs when they are not able to pay. According to a study conducted by then this year, up to six percent of young people between the ages of 18 and 24 end up in a collection procedure after using these apps.

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