Experts warn against availability of 'buy now, pay later' apps for alcohol purchases
Online liquor stores are increasingly offering deferred payment on alcoholic beverages through pay-later apps like Klarna or Riverty. Experts are concerned about the implications of offering alcohol on credit, according to RTL Nieuws.
For example, online liquor store Gall & Gall cooperates with Klarna. Customers who use Klarna can receive their order of alcohol and then pay for it within 30 to 60 days, according to RTL Nieuws. Meanwhile, Wijnvoordeel.nl uses the app Riverty to allow customers to pay later for alcohol.
Technically, this practice is still legal under the Alcohol Act, which has other restrictions on large discounts or alcohol advertising, for example. But experts from the Trimbos Institute and the Alcohol Prevention Foundation (STAP) told RTL they found it irresponsible toward vulnerable groups.
"Delayed payment makes it more attractive to buy alcohol because you are no longer held back by the price," Carmen Voogt, an alcohol policy researcher at the Trimbos Institute, told RTL. "While we know from research that the price incentive is actually a decisive factor in the decision whether someone buys alcohol or not, and how much."
There is also the issue of penalties if a customer does not pay back the "buy now, pay later" app on time. A customer who makes a purchase with Klarna or Riverty can be penalized for late payments. Collection costs for Riverty start at 40 euros, according to RTL Nieuws.
"This can also lead to excessive users getting into debt and getting into financial problems," said Floor van Bakkum, a prevention manager with addiction care institution Jellinek.
Klarna and Riverty objected to this criticism, pointing out that most customers pay back what is owed on time, anyway. "Consumers have paid for alcohol for decades with credit cards or other forms of credit. Klarna is a new alternative, but it does not affect consumers' buying behavior in any way," a statement from Klarna said. According to Wijnvoordeel.nl, almost all transactions take place through iDeal –– not "buy now, pay later" apps.
