In recent years, boosted by the changing consumer habits in the wake of the COVID-19 pandemic, the e-commerce sector has experienced an exponential growth. This new environment has created a particularly fertile breeding ground for the rapid emergence of a new consumer financing model that is getting ever more popular, the so-called Buy-Now-Pay-Later (BNPL). By providing customers with the flexibility, to pay for goods purchased online in several interest-free instalments, BNPL has quickly become one of the fastest growing payment methods in many countries around the world.
In the coming years, the BNPL market is expected to continue its growth fuelled by the expected increase in the number of customers and transaction volumes as well as the expansion into new markets of the leading BNPL firms.
But how is BNPL regulated in the EU and the UK, what are some key developments that entities active in this sector shall be aware of and what lies ahead for this rapidly growing sub-sector of the fintech industry?
Find out in our next episode, in which our experts Mila Pencheva (Senior Associate, Financial Services Regulatory, London) and Miroslav Đurić LL.M. (Senior Associate, Financial Services Regulatory, Frankfurt) discuss key regulatory aspects of BNPL from the EU and the UK perspective.
