Retailers offering their customers the option of deferred or instalment payment as a means of promoting sales is nothing new. These days, however, such offers are increasingly made during the payment process itself – at the checkout counter or, in the case of online purchases, at the stage when customers are asked to select their payment method.. And thanks to specialised payment service providers, once consumers have signed up, they do not initially have to provide additional identification for credit-based payment. This is why there is very little effort involved for all parties when shopping on credit, especially online. With such payment forms becoming increasingly more convenient, the risk of accumulating more debt than they can handle is greater for vulnerable consumers or those inexperienced in financial matters. BaFin monitors the developments in this market segment and takes action where needed on the basis of its mandate to protect collective consumer interests.

The question remains whether credit-based payment for purchases is always the cheaper option for consumers. It is certainly worth comparing providers. Moreover, consumers should not let seemingly generous payment terms tempt them into making purchases that might get them into serious financial trouble sooner or later. But, above all, they should always be aware of payment deadlines.