Buy Now, Pay Later: Opportunities and Risks of BNPL

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Published on 16/07/2026

In recent years, many consumers have come across what appears to be a simple offer while shopping online or in-store: "Buy Now, Pay Later" (BNPL). Although it is not always perceived as such, BNPL is a form of credit, typically offered for the purchase of lower-cost goods and services.

When you use BNPL, you receive the product or service immediately but pay only part of the purchase price upfront. The remaining balance is repaid in instalments over time, usually through direct debits from the bank account or payment card provided at the point of purchase. No interest is charged.

A recently published study examines the evolution of BNPL, who uses it, the risks it may entail and the significant changes that will result from the new European consumer credit rules, known as the Consumer Credit Directive 2 (CCD2).

Here is what you need to know.

The numbers

BNPL has grown remarkably quickly, evolving from a niche online shopping solution into a payment method used by an increasingly large share of the population. In Italy, too, it has become part of everyday spending habits.

According to Bank of Italy researchers:

• in 2024, the global BNPL market reached US$ 342 billion, a 20 per cent increase compared with 2022;
• in Italy, transaction volumes grew from around €1 billion in 2021 to almost €10 billion in 2025. The proportion of households using BNPL rose rapidly, from 4 per cent in 2022 to 30 per cent in 2024. This means that around one in three Italians has used BNPL at least once, mainly for online purchases. It is most common among younger households, with medium-to-high levels of education, often self-employed, and among households located in Central and Southern Italy;
• while in 2022 BNPL was more widespread among households with above-average incomes, by 2025 it had become increasingly popular among people with lower incomes, limited financial assets and difficulties making ends meet;
• among households with more than one outstanding debt, and among those already using consumer credit, the likelihood of using BNPL - and therefore increasing their overall indebtedness - rises by around 20 per cent.

Advantages and drawbacks

Several features make BNPL an attractive tool.

Simplicity: BNPL can usually be activated with just a few clicks, often directly at checkout and without lengthy procedures.

No interest charges: In most cases, there are no financing costs. As a result, it may be cheaper than using a credit card with repayment by instalments.

Greater flexibility: Spreading a purchase over several smaller payments can make household budgeting easier and may provide access to goods and services for people who would otherwise struggle to obtain credit.

However, despite its convenience, BNPL is not without risks.

The main concern is that consumers may take on debt without fully realising it, underestimating the overall sustainability of their financial commitments. Unlike a traditional loan, BNPL is often not perceived as a genuine form of borrowing because it is so easy to obtain and usually free of charge.

While each individual instalment may appear affordable, consumers can easily activate several deferred-payment arrangements at the same time, sometimes impulsively and for different purchases. The average amount financed through BNPL is just over €200, which may seem manageable in isolation. Taken together, however, multiple commitments can become difficult to manage, especially when combined with other financial obligations.

And if repayments are missed, late-payment charges and penalties can significantly reduce the advantages of the arrangement.

Given that BNPL is increasingly used by consumers with fragile financial situations - often characterised by lower incomes, limited savings and existing debts - it can create a potential debt trap. In some cases, it may be used not simply for convenience but as a way of coping with financial difficulties, thereby increasing the risk of over-indebtedness.

Greater consumer protection under the new European rules (CCD2)

In recognition of these risks, BNPL has been explicitly included within the scope of the new Consumer Credit Directive (Directive (EU) 2023/2225, known as CCD2), which is expected to apply in Italy no earlier than November 2026.

Consumer credit rules impose obligations on banks and other lenders designed to strengthen consumer protection. These safeguards will therefore also apply to BNPL, benefiting both consumers and the overall quality of lending in this market.

The principle is straightforward:

BNPL is a form of credit and should be treated as such.

This will mean:

• greater transparency, with clearer information provided before the agreement is signed (including the SECCI form) and in the contract itself, explaining the characteristics of the payment deferral as well as any charges or penalties, thus helping consumers to gain a better understanding of the financial commitment they are taking on;
• stronger consumer rights, including a 14-day withdrawal period, the possibility of repaying the credit early without penalties, the right to terminate the credit agreement if the related sales contract is not fulfilled, and the right to have creditworthiness assessments reviewed by a human when automated systems - such as algorithms - are used;
• more rigorous creditworthiness assessments before granting deferred payment arrangements, requiring lenders to examine consumers' income, expenditure and existing debts.

The overall aim is to reduce risks for consumers and prevent situations of over-indebtedness.

Practical tips

In summary, BNPL is neither inherently good nor bad. It can be a useful tool when used responsibly, helping consumers spread the cost of a purchase over time.

But every instalment remains a future commitment, so it is important to:

• assess the impact of repayments on your budget;
• keep track of how many instalment plans are running at the same time;
• remember that missing a payment can be costly;
• bear in mind that spreading a payment does not eliminate the expense - it simply postpones it.

The basic rule remains unchanged: before choosing to "pay later", ask yourself whether you will genuinely be able to meet the repayments without difficulty. Even if no interest is charged, the debt still has to be repaid on time.

Finally, if you encounter problems with a financial intermediary, you can submit a complaint to Banca d'Italia through its online services portal or turn to the Banking and Financial Ombudsman (ABF).

You can find further information about BNPL in our dedicated factsheet.