Buy-Now-Pay-Later: More To Come

The global boom of buy-now-pay-later ("BNPL") does not seem to be slowing since its widespread take-up by consumers across the world during the pandemic. With consumer attitudes and spending habits evolving, BNPL is being used increasingly on everyday items such as clothing and groceries, rather than the more traditional larger ticket items seen in the past. With this prevalence in day-to-day life, legislators around the world are now beginning to take a closer look at the sector, particularly in light of the insolvency risk it can represent for the most financially vulnerable people.

Looking at France in particular, BNPL schemes are excluded from the consumer credits regime when specific conditions are met. However, French banking rules still apply and BNPL is indeed considered a credit, therefore entering into the scope of the French banking monopoly rules.