Invoice, “pay later” and instalments — how e-commerce is affected by the Consumer Credit Directive

Financial regulation is entering a new phase as the EU Consumer Credit Directive (CCD2) is implemented into Swedish law. The directive broadens the definition of consumer credit and targets modern payment solutions — in particular BNPL, invoice and instalments. In Sweden, the proposal appears in SOU 2024:69 with a planned entry into force on 20 November 2026. For companies in e-commerce, fintech and credit intermediation, the transition between payment and credit is clarified and more actors are formally regarded as lenders or credit intermediaries.

Invoice, “pay later” and instalments — how e-commerce is affected by the Consumer Credit Directive: which credits are covered?

The Consumer Credit Directive in principle applies to all consumer credit except mortgages, subject to certain exemptions. The Swedish market already has broad regulation, but the directive harmonises the EU baseline and defines scope more precisely. For European businesses, more arrangements that were previously handled as payment solutions are now treated as credit — notably for e-commerce operators, BNPL providers and businesses offering deferred payment, including Buy now pay later models.

• Instalments and hire purchase instalment purchase linked to goods or services.
• BNPL (Buy now pay later) — including interest- and fee-free arrangements.
• Payment by invoice — where the deferral does not meet the directive’s exemption criteria.
• Short-term credit and micro-loans.
• Credit cards and revolving credit, including overdrafts.

This is central to any actor offering these payment options. A credit relationship can arise even without interest or fees — the decisive factor is whether the customer may defer payment. Businesses that have previously relied on exemptions should therefore review their business model and ensure that lending complies with the new rules, which may include authorisation requirements from the Swedish Financial Supervisory Authority (FI).

Exemptions under the directive — narrower than before

The directive preserves the possibility for suppliers to offer short interest-free deferrals, but the scope is now significantly narrower. The aim is to prevent such deferrals being used as a form of hidden credit and thereby circumvent regulation. In practice, payment solutions previously thought to fall outside the definition of consumer credit may now mean that the seller is regarded as a lender or a credit intermediary. For an interest- and fee-free deferral to be excluded from the directive’s scope, specific criteria must be met.

Exemption for payment within 50 days for micro, small and medium-sized enterprises

For merchants, a general exemption applies where the payment deferral is granted directly by the supplier of the goods or services and repayment occurs within the timeframe. For the exemption to apply, all of the following conditions must be met:

• No third party is the lender: the deferral may not involve credit being provided by an external actor.
• Payment within 50 days: the consumer must pay the full amount no later than 50 days after the goods or services have been delivered.
• Interest- and fee-free: only the purchase price may be paid, except for late fees permitted under national law.

Exemption: payment within 14 days for larger e-commerce suppliers

For suppliers that are not micro, small or medium-sized enterprises under the EU definition, and that sell goods or services at a distance (online), the exemption is considerably tighter. For such actors to avoid authorisation requirements, all of the following conditions must be met:

• No third-party involvement: neither the offering nor the acquisition of the credit may be carried out by an external actor.
• Payment within 14 days: the consumer must pay the full amount no later than 14 days after delivery.
• Interest- and fee-free: only the purchase price may be paid. Any late fees must comply with national law.

Commercial implications

For e-commerce operators and digital platforms, this means a strategic choice: either adjust payment terms to avoid authorisation, or meet the new requirements and operate in a regulated environment. The new legal framework means that many interest-free deferrals previously exempt will now be in scope unless they satisfy the directive’s narrow conditions. This affects BNPL and Buy now pay later offerings across European markets.

Invoice, “pay later” and instalments — how e-commerce is affected by the Consumer Credit Directive: what does Sweden’s implementation mean in practice?

For European companies, the directive brings both substantive changes and process- and authorisation-related requirements. Sweden already has extensive regulation, but this is now formalised via EU standards. The main shift lies in which credit types are covered and the fact that certain actors will face a licensing requirement from FI.

• BNPL arrangements and similar payment solutions are explicitly regulated.
• Creditworthiness assessment and pre-contract information must be adapted.
• Authorisation may capture more actors, particularly e-commerce operators.

This means that marketing and legal processes must align. Lenders and intermediaries need internal governance that manages risk and reporting. Over time, this will benefit companies that integrate compliance into their business strategy rather than treating it as a constraint.

Morling Consulting helps you assess how the requirements may affect operations across Europe and which measures deliver the greatest impact. We translate the rules into workable processes, roles, contracts and system support. Get in touch for clarity and assurance well before the rules take effect.