Klarna-style “pay later” gets real credit checks

From 20 November, BNPL falls under full EU consumer-credit law.

From 20 November, buy-now-pay-later and small interest-free loans lose their regulatory free pass. Providers like Klarna and PayPal must run genuine affordability checks before approving you, show standardised cost information, and offer forbearance if you fall behind — even on tiny checkout instalments.

For youExpect a few more “declined” moments at checkout — and far fewer people sliding into invisible instalment debt.

Next: Member states are finalising national implementation ahead of the date.

Verified against the sources above on 18 July 2026. Plain-language summary — not the legal text and not legal advice.