Italy

Status

No steps taken to implement legislation.

Is the country considering regulation?

BNPL services are already regulated under existing legislation in Italy.

Current state of regulation regarding BNPL?

On 28 October 2022, Bank of Italy published a formal statement on BNPL (attached – available only in Italian) whereby the IT Authority confirmed that BNPL can be a form of regulated activity even it doesn’t fall within the scope of Consumer Credit Directive (e.g. because it is an interest free loan).

Literally: Bank of Italy confirmed that BNPL is a form of credit, through which consumers purchase goods or services and pay for them later, also in installments. This form of credit is not specifically regulated and therefore the applicable legislative framework and associated protections depend on the specific design of the transaction (and on who is the actual lender). The communication draws consumers' attention to potential risks and safeguards provided by the legal framework for the protection of customers.

Indeed, according to the Italian banking law also deferral of payments or loans granted free of charge would be considered a form of financing since Italian law does not generally exempt these forms of credit from the general banking law and regulation. This means that for financing not included in the scope of consumer credit offered to consumers by a third party other than the sellers of goods or services (which are allowed to provide deferment of price to the extent that no interest and other costs are charged to the buyer), the rules provided for general financing apply, including licensing requirement, pre-contractual and contractual information requirements as well as the relevant obligations laid by the Italian AML law.

Given the above, and also taking into account the proposed revision of the Consumer Credit Directive (2008/48/EC). We do not expect significant changes in the future and/or that BNPL will be deregulated in Italy.