Buy now, pay later (BNPL) is gaining more popularity in Italy, quickly transforming the payment scene, particularly in ecommerce. In 2023, BNPL transactions in Italy added up to €4.6 billion, making up 6.5% of the country’s online market. This payment method is already used by 14% of Italians—who prefer it for online shopping above any other method—with a satisfaction rate so high that only 2% of customers said they wouldn’t use it again.

This article explains what BNPL is in Italy, how it works, and its benefits and regulations.

What’s in this article?

• Buy now, pay later (BNPL) explained
  
• How BNPL works
  
• BNPL payment regulations in Italy
  
• Advantages of BNPL payment methods in Italy
  
• Principal BNPL payment service providers in Italy
  

Buy now, pay later (BNPL) explained

Buy now, pay later (BNPL) allows for short-term deferred payments—usually online but also in brick-and-mortar stores—provided by companies that specialize in this service. It typically applies to small and medium-sized purchases, letting buyers pay later in a few installments, often without interest.

In Italy, as in many other countries, BNPL has grown quickly in recent years. This was driven largely by the COVID-19 pandemic, which significantly boosted digital payments in a country that traditionally uses cash. The pandemic also created economic uncertainty, leading more people to turn to installment payments as a way to manage their cash flows more effectively.

Differences between BNPL and consumer credit

Deferred payment methods are different from traditional installment plans (i.e., consumer credit). These are only offered by banks or finance companies, usually for larger amounts and with interest. BNPL follows the same concept but comes with no extra costs for the customer. Only specialized providers offer it, and it provides quick and simple financing. It often requires no supporting documents and is designed for moderately priced purchases.

How BNPL works

When shopping online, customers often see the option to pay in installments when selecting their payment method. With this option, the customer typically pays a portion of the total price up front. They split the remaining amount into installments, usually over three to six months.

In Italy, the BNPL provider takes on the risk of the loan and immediately covers the full cost of the order, ensuring the business receives the total payment for the product or service right away.

This type of financing is fast and easy to access, without the need for separate registration or extra processing time. While terms and conditions vary across BNPL providers, most do not charge interest as long as customers make payments on time. If a customer misses or is late with an installment payment, they incur additional fees.

BNPL payment regulations in Italy

Until now, the authorities have not specifically regulated BNPL payment services in Italy, as they are exempt from existing consumer credit rules. Article 2 of the Consumer Credit Directive (Directive 2008/48/EC) excludes agreements:

• Under €200

• Without interest or additional charges

• Repayable within three months

• With only minimal fees

The rising popularity of BNPL payment options in Italy—combined with unclear contract terms from some providers due to regulatory gaps—has led to a significant increase in insolvency cases. To address this issue, the EU has introduced the new Directive 2023/2225 (known as “CCD II”), explicitly regulating BNPL services in Italy for the first time. It acknowledges their growing role in the payment landscape and highlights the need for a clear regulatory framework that ensures customer protection while supporting innovation.

Key provisions of the CCD II Directive on BNPL payments in Italy

Here is a summary of the main changes introduced by the CCD II Directive:

• Broader information requirements
  The new legislation increases disclosure requirements for customers—both before and during the contract—ensuring they have the necessary information to make an informed decision. The information must be accurate, clear, and not misleading. It is prohibited to use wording that could create false expectations about credit availability, costs, or the total amount. Additionally, customers must explicitly give consent to enter into the contract, and the business cannot assume that consent.

• Deeper assessment of the customer’s creditworthiness
  Lenders must conduct a thorough assessment of the customer's creditworthiness, considering relevant data such as income, expenses, and other financial details. This assessment is to protect customer's by preventing irresponsible lending and excessive debt.

• Overdrafts and overruns
  Chapter VII of the Directive focuses on regulating overdrafts and overruns to help prevent customers from falling into significant debt.

• Debt counseling services
  One of the Directive’s most innovative proposals is the creation of independent and easily accessible counseling centers. These centers will provide legal, financial, and psychological support to customers in difficulty, helping them manage their debts and maintain an acceptable standard of living.

Exceptions from the CCD II Directive

CCD II covers all BNPL cases in Italy, except for specific exemptions outlined in Article 2. These exemptions apply to deferred payments when:

• A supplier of goods or a provider of services—without a third party offering credit—gives the customer time to pay for the goods or services purchased.

• The customer must pay the purchase price free of interest without any other charges and with only limited charges for late payments imposed in accordance with national law.

• The customer will make the payment in full within 50 days of delivery.

Companies that are not microbusinesses or small and medium-sized enterprises (SMEs)—such as major ecommerce platforms—can offer BNPL services under distance contracts. If they do, the exception under the CCD II Directive applies if the transaction meets these conditions:

• A third party neither offers nor purchases credit.

• The customer is due to pay in full within 14 days of delivery.

• The customer must pay the purchase price without interest and without other expenses, except for limited late payment fees imposed in accordance with national law.

Implementation of the CCD II Directive

Businesses in Italy must implement and publish the necessary laws, regulations, and administrative measures to comply with the Directive by November 20, 2025. The provisions will take effect in EU member countries starting November 20, 2026, replacing the previous consumer credit legislation.

Advantages of BNPL payment methods in Italy

Benefits for customers

The advantage of BNPL for customers is that they can buy immediately—even for larger amounts—while postponing payment and avoiding cash flow issues.

Benefits for businesses

Here are some benefits for Italian companies when accepting BNPL payments:

• Immediate payment without risk of nonpayment: Businesses receive the full amount immediately at the time of purchase, eliminating the risk of nonpayment or delays when the customer’s installments are due. The BNPL service providers take on all risks related to the customer’s payment.

• Larger customer base: Offering more payment options increases the likelihood customers will complete their purchases.

• Increased conversion: Customers are more likely to buy if they can pay in installments through a quick and easy process, especially for larger purchases.

• Simple integration: Many BNPL providers offer easy integration solutions, enabling businesses to add this payment option to their checkout process with minimal technical effort.

Selecting the right payment service provider is key to launching and expanding your online business. Stripe Payments provides access to over 100 payment methods, including BNPL installment options, meeting compliance and security requirements to protect both your payments and customer data.

Principal BNPL payment service providers in Italy

Here are the most popular BNPL service providers in Italy:

• Klarna
  Klarna—the Swedish installment payment giant—also covers Italy, both online and in physical stores. It offers three flexible payment options: pay now; pay in three interest-free installments; and pay in 30 days. You can use Klarna on Stripe, thanks to a unified integration that enables quick setup without the need for app installation, onboarding, or risk assessment procedures.

• Scalapay
  Scalapay is an Italian company that provides payment options in three or four interest-free installments. It is available both online and in physical stores and is supported by Stripe. Find out how to accept Scalapay payments with Stripe.

• PagoDIL by Cofidis
  This service lets customers split their purchases into up to 12 installments—free of charge—both online and in physical stores.

• PayPal
  From your PayPal account, you can select the option to split your purchase into three installments.

• Amazon
  For eligible products on Amazon, you can choose to pay in 3, 5, or 12 monthly installments.

• HeyLight by Compass
  This service provides various flexible payment options—both online and in-store—with up to 24 interest-free monthly installments.

• FLOA by BNP Paribas
  This BNPL payment service in Italy lets you make purchases in three or four installments without needing to provide supporting documents or choose the Pay Later option for deferred payment.

• Splittypay by Avvera
  With Splittypay, you can divide your payments into four or more interest-free installments, without needing to provide any income-related documents.