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Consumer Protection Economy

Belgium Bans Klarna and BNPL Services for Minors

Valyrian News Network — — 4 min read

Belgium Bans Klarna and BNPL Services for Minors

The Belgian Chamber of Representatives has approved legislation that explicitly bans ‘Buy Now, Pay Later’ (BNPL) services such as Klarna, FLOA, and Riverty from offering credit to minors, closing a regulatory loophole that left young consumers vulnerable to debt accumulation. The bill, which transposes the EU Consumer Credit Directive II into Belgian law, was adopted unanimously with abstentions from the far-right Vlaams Belang and the liberal Anders party, as reported by VRT NWS.

Closing a Regulatory Gap

Until now, BNPL services in Belgium operated outside the framework of traditional consumer credit regulation. Unlike banks, providers were not required to verify borrowers’ ages, check creditworthiness, or register as credit providers. This allowed minors to easily access short-term credit for online purchases with minimal oversight.

“Minors will therefore no longer be able to take out credit. Until now, it was far too easy to do so, even though it was prohibited,” said Minister of Consumer Protection Rob Beenders (Vooruit), as quoted by De Morgen.

The legislation was introduced by Economy Minister David Clarinval (MR), together with Ministers Jan Jambon (N-VA) and Rob Beenders (Vooruit), reflecting cross-party consensus on the need for stronger consumer protections.

The Scale of the Problem

Data from the Belgian Federal Public Service Economy, published in May 2024, revealed that 28.5% of under-24s use BNPL services and that nearly one in three BNPL users was under 24 years old. According to VRT NWS, nearly one in five people who took out such credit encountered financial trouble, and 17% of users had come into contact with a debt collection agency.

Consumer organization Testaankoop had long raised concerns about the lack of safeguards. Spokesperson Laura Clays warned: “There is zero control over who buys on credit with ‘buy now, pay later.’ For those who use the app consciously, it is very handy. But it is a playground for people who are not financially strong enough.”

What the New Law Requires

The new regulations, which take effect on November 20, 2026, introduce several key requirements:

  • Explicit ban on credit for minors: BNPL providers are prohibited from extending credit to anyone under 18.
  • Creditworthiness checks: All consumers must undergo creditworthiness assessments before being granted credit.
  • Age verification: Providers must implement systems to verify users’ ages. Minister Beenders warned that if companies fail to comply voluntarily, the government will mandate identity verification apps such as ItsMe or MyGov.
  • Penalties: Non-compliance carries fines of up to €800,000 or 6% of annual turnover, enforced by the Economic Inspectorate against both Belgian and foreign lenders.

The law also extends consumer credit protections to small loans under €200, which were previously unregulated, and grants consumers whose credit applications are processed by AI systems the right to request a human review. Additionally, the ‘right to be forgotten’ for cancer survivors, previously limited to mortgage credit, has been extended to consumer credit, as noted by La Libre Belgique.

EU Context

The Belgian law transposes the EU Consumer Credit Directive II (Directive 2023/2225), adopted in October 2023, which requires member states to regulate BNPL products where payment is due within 50 days. Germany passed its implementation law in April-May 2026 with the same November 20 effective date, and the Netherlands has also moved to regulate BNPL services, as EU Business reported during the directive’s development.

Implications and Outlook

For minors, the law provides significant new protection from debt accumulation, though it may limit access to legitimate short-term credit options. For BNPL providers, major operational changes are required, including age verification systems and mandatory creditworthiness checks.

The law’s graduated enforcement approach gives providers an opportunity to voluntarily implement compliance measures before the government mandates specific identity verification tools. The Economic Inspectorate is empowered to enforce the rules against both domestic and foreign lenders operating in Belgium.

As other EU member states implement the CCD2 directive, a patchwork of national regulations is emerging across the bloc. The Netherlands, for instance, has called for a ban on “pinnen op de pof” (paying on tick), while Germany passed its implementation law earlier this year.

The key question remains how BNPL providers will balance compliance with user experience, and whether the new rules will drive minors toward less regulated credit alternatives. For now, Belgium has taken a decisive step — one that consumer advocates hope will serve as a model for other nations grappling with the rapid expansion of digital credit services.