Buy Now, Pay Later services face scrutiny over debt perception and regulation

A study published in the Financial Services Review reveals that 40% of young adults aged 18 to 34 do not recognize ‘buy now, pay later’ (BNPL) services as a form of debt. The research, conducted by Auckland University of Technology and Griffith University, found that nearly half of respondents believed these services carried fewer consequences than traditional borrowing. Among users, 43% utilized other credit, such as credit cards, to cover BNPL repayments, while 55% had incurred late penalties.

In Italy, the use of BNPL has grown significantly, with the Bank of Italy reporting that the share of families using these tools rose from 4% in 2022 to 30% in 2025. To address consumer risks, new European consumer credit directives (CCD2) are being implemented. In Italy, operators must comply with stricter regulations by November 20, 2026. These rules mandate more rigorous pre-contractual information, advertising standards, and assessments of a consumer's ability to repay, officially classifying these services as credit rather than mere payment methods.