Sweden
Status
No steps taken to implement legislation.
Is the country considering regulation?
No formal communication has been made to suggest this.
Current state of regulation regarding BNPL?
In Sweden, BNPL falls within the scope of the Swedish Consumer Credit Act 2010:1846) (Sw. Konsumentkreditlagen), which is the Swedish implementation of Directive 2008/48/EC (“CCD”). To provide consumer credit, a license is required from the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) (“FSA”), according to the Act (2014:275) on Certain Consumer Credit Activities (Sw. Lag (2014:275) om viss verksamhet med konsumentkrediter). There are also other financial services licenses which cover the provision of consumer credits (e.g. a bank license)
From a marketing perspective, the Swedish Payment Services Act (2010:751) (Sw. Betaltjänstlagen) introduced new provision during 2020 regarding the display of payment solutions online, which applies when consumers buy goods or services online, and which to some extent affects BNPL:
- If an online merchant accepts at least one payment method that does not involve the extension of credit to the consumer, that payment method must be presented first, for example in a list of available payment options (note that the amendment does not require online merchants to accept at least one payment method that does not involve credit; merchants remain free to decide which payment methods they want to accept).
- Secondly, if the online merchant accepts at least one payment method that does not involve credit, the payment options involving credit may not be pre-selected on the merchant's website or in the merchant's mobile shopping app.
Outline the proposals to change regulation?
There are currently no specific legislative proposals in Sweden regarding BNPL. However, in November 2021, the Swedish government appointed a special investigator to review the market for consumer credits and to consider the European Commission's proposal for a new Consumer Credit Directive and the negotiations (see Dir. 2021:108 available in Swedish only). The Swedish government's aim is to assess the effectiveness of the current regulations regarding consumer credits and to identify any gaps or weaknesses in the regulatory framework. The Swedish government will also consider whether additional measures are needed to protect consumers.
In addition, the Swedish government presented in March 2023 its remittance of what role of the Swedish state should play in the future payment market (see SOU 2023:16 available in Swedish only). In the report concerns are raised that some consumers were taking on more debt than they could afford and that some BNPL providers were not complying with the existing regulations.
In conclusion, the Swedish government's focus on reviewing the regulations governing consumer credits (BNPL included) suggests that there may be changes to the regulatory framework in the near future.
