Belgium is set to introduce strict new consumer protection rules that will bar minors from accessing Buy Now Pay Later (BNPL) platforms, including widely used services such as Klarna.
The decision was announced Monday by Consumer Protection Minister Rob Beenders (Vooruit), who said the country must urgently tighten its laws to shield young people from growing financial risks.
Under the upcoming changes, anyone under 18 will be prohibited from taking out credit through BNPL services. Although lending to minors was already technically banned, Beenders noted that the current system made it “far too easy” for teenagers to obtain short-term loans for online purchases.
BNPL platforms allow users to delay payments or split purchases into instalments, creating a convenient alternative to traditional credit.
But concerns have surged as more young consumers fall behind on their repayments, leading to long-term financial consequences. Recent figures show that one in five BNPL users faces contact from debt collection agencies, while a third of all borrowers are under the age of 24.
Beenders said these numbers reveal how accessible and potentially harmful short-term online credit has become. He stressed that Belgium’s consumer credit law—dating back to an earlier era of lending—must be modernised to capture new digital financial tools operating beyond traditional regulatory frameworks.
The minister is now moving to ensure all BNPL providers fall fully under existing consumer credit rules. This shift would close gaps that previously allowed platforms to operate without strict oversight, despite granting what are effectively short-term loans.
Once the updated legal framework takes effect, BNPL firms will be required to enforce stricter age checks, preventing minors from signing up. Companies that violate the rules could face significant penalties.
The new regulations set out fines of up to €800,000 or 6% of a company’s annual turnover, whichever amount is higher. Beenders warned that the government “will not hesitate” to sanction platforms that fail to follow the law.
In addition to financial penalties, authorities may also require BNPL firms to adopt advanced identity verification tools.
Beenders pointed specifically to Belgium’s digital identification systems, ItsMe and MyGov, as potential mandatory solutions if companies do not voluntarily comply. These tools would help ensure that users are accurately identified and legally eligible before receiving credit.
Consumer protection groups have welcomed the government’s move, noting that a growing number of families have raised alarms about minors entering into debt agreements they legally should not have been able to access.
Advocates say many young people underestimate the risks of BNPL loans, which often appear simple and harmless but can quickly accumulate into unmanageable debt.
Financial analysts also highlight the trend of rising youth participation in BNPL services across Europe. As online shopping continues to expand, BNPL platforms have positioned themselves as convenient financing tools—yet their marketing often targets young, inexperienced consumers who may lack financial literacy.
Belgium’s new measures come as several European countries examine similar concerns around digital credit services. While BNPL companies argue that their products are low-risk alternatives to traditional loans, regulators increasingly view them as credit vehicles that require stronger oversight.
Beenders emphasised that Belgium’s priority is protecting young people from becoming trapped in debt cycles they do not fully understand. “The risks are simply too high,” he said, adding that digital lending must meet the same safety standards as established financial institutions.
The government is expected to finalise the legal amendments in the coming months, with enforcement likely to begin shortly after. Once the rules take effect, Belgium will join a growing list of countries setting stricter regulations on BNPL services—aiming to balance innovation with consumer protection.
