Pay later is changing: what does this mean for your webshop?

Pay later is popular among consumers, but the rules are about to change. With the announcement of the CCD2 directive (European consumer credit legislation), the requirements for pay later solutions are becoming stricter. The goal: better consumer protection and clearer insight into what consumers can expect.

The directive has been adopted at a European level and will be implemented into Dutch legislation this year. In practice, this means that consumers will undergo more extensive checks before they are allowed to pay later. These include additional verification steps. As a result, a consumer may not be approved for pay later immediately and may first be asked to answer some additional questions.

To prevent customers from getting stuck during checkout, BNPL providers work with a hosted checkout: an extra step in the payment process that not only helps consumers complete their payment safely, but also makes it technically easy for merchants to implement BNPL solutions.

What is a hosted checkout?

A hosted checkout is an extension of the webshop checkout with one additional screen that is managed by the BNPL provider. Instead of an error message or rejection, the consumer receives clear explanations and guidance. On this page, the customer can:

• review or add additional information;
• complete an extra security step;
• switch to another suitable payment method. 

This keeps the payment process clear and allows the purchase to be completed.

Billink One - always continue paying

With Billink One, Billink ensures that consumers can always complete their purchase, even if paying later turns out not to be possible.

Where consumers previously received an error message and had to choose again, they are now automatically guided to the next step. For example, when someone does not pass the check due to outstanding payments, a spending limit, or when an additional verification via iDIN is require.

Riverty checkout - safe and clear

Riverty also uses a hosted checkout/payment page, often referred to as a redirect page or the “Riverty checkout.” This page is used when additional steps are required during the payment process.

In some cases, a consumer needs to complete extra verification, for example through a security check such as Strong Customer Authentication (SCA). The consumer is then automatically redirected to Riverty’s secure page. There, the consumer gives permission via their own bank to share bank account and personal details with Riverty, which Riverty then uses for verification. After completing these steps, the consumer is automatically redirected back to the webshop to complete the payment.

The Riverty checkout ensures that:

• orders can be processed securely; 
• webshops comply with the laws and regulations applicable to Riverty;
• technical and legal updates are implemented automatically, without impacting the checkout.