Who carries the credit obligations when a merchant offers BNPL?

The BNPL provider does. It is the lender, so creditworthiness checks, pre-contract information and the right of withdrawal under the revised Consumer Credit Directive sit with it. The PSP or PayFac that connects the provider is responsible for checking that provider's status in each country and for a checkout that presents the credit option clearly.

The lender is the provider

When a shopper chooses pay in three or pay in thirty days, the credit contract is between the shopper and the BNPL provider. The merchant is paid upfront, minus a fee, and is not a party to the credit. The revised Consumer Credit Directive therefore places the obligations on the provider: creditworthiness assessment, pre-contractual information, the right of withdrawal, and support for borrowers in difficulty.

What the operator owes

• Checking that each BNPL provider it connects is authorized in the countries where it is offered.
• A checkout that presents the credit option clearly, with its terms, next to other methods.
• Refund handling that adjusts the shopper's plan through the provider.

What the merchant owes

Accurate product and delivery information, since a dispute about the goods still lands on the merchant, and respect of the provider's rules on eligible products. The division is clean: credit risk and credit law with the provider, acceptance and presentation with the operator and merchant. It is also why operators should document provider authorizations market by market, as the directive is transposed unevenly.