Fifteen years after the original rules, the EU has refreshed its approach to consumer credit through the Consumer Credit Directive 2, which Brussels policymakers passed last year. Following this, EU countries had until 20 November 2025 to update their local laws, bringing modern products like Klarna’s Buy Now Pay Later into scope to strengthen consumer rights and make checkout choices clearer. With (some) European governments wrapping up their work and some being slightly delayed, regulation is now expected to apply across Europe by November 2026.
That’s great news - and exactly what Klarna has been calling for. Proportionate regulation that will protect consumers, raise standards, and give retailers clarity.
Klarna’s ready. We’ve been a fully licensed European bank since 2017, already offer regulated credit, operate under robust EU supervision, and have helped explain how BNPL works in practice for the new rules to make sense in reality. While national authorities still need to iron out details, here’s what CCD2 will cover:
Scope: BNPL comes into scope, for credit agreements under €200 and up to €100,000. Member States can choose proportionate measures for BNPL, including opt‑outs on some ad and pre‑contract information requirements.
Pre‑contract info: The rules require a clear summary of relevant information before you agree. Klarna already provides this and will align to the new format in checkout.
Credit checks: Providers will need to run credit checks, which are proportionate to the product and risk, using relevant and accurate information about income and expenses. Consumers who are declined for credit will be able to ask for an explanation for the decline. Klarna already checks customers on each and every transaction.
Marketing and ads: Credit advertising must be clear and balanced. Some specifics may vary by country where proportionate BNPL regimes are adopted.
Customers in difficulty: Providers must follow set rules when helping customers in arrears. Klarna is already aligned.
Credit reporting: Some markets will require BNPL loans to be reported to credit registers. As long as reporting systems are up to date, this can contribute to improved credit information.
Consumer protection: Stronger, clearer standards across the journey - from what you see in ads, to what you’re told before you agree, to how you’re supported if things go wrong. All things Klarna has already integrated as part of our smooth customer experience.
What’s next?
Klarna is built for this. Across Europe we already apply high regulatory standards such as clear disclosures, robust affordability checks, responsible marketing, and strong support if customers hit turbulence.
The handover from the EU’s final text to national laws is the last leg before landing. Not all 27 Member States are moving at the same speed, so some may be slightly delayed. We’ll stay closely involved as rules are transposed, keep shoppers and merchants informed, and make sure consumers continue to get access to products which are fast, transparent, and fair.
Regulation is coming in for a smoooth landing—and Klarna is more than ready.