What retailers need to know about the new authorisation requirement for the intermediation of consumer credit
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From 20 November 2026, the German Act implementing Consumer Credit Directive (EU) 2023/2225 will enter into force. It focuses on practically all situations in which consumers do not pay for goods or services immediately and in full. One of the new provisions is a separate authorisation requirement for the intermediation of general consumer credit agreements under section 34k of the German Trade Regulation Act (Gewerbeordnung – GewO). Unlike the current section 34c GewO, section 34k GewO will apply only to the intermediation of credit agreements and financial accommodation for consumers.
The key questions at a glance:
1. What is a general consumer credit agreement?
In future, this will cover practically all forms of sales financing, including traditional instalment purchases, purchases on account, 0% financing and “buy now, pay later” offers.
In the context of credit intermediation, this concerns general consumer credit agreements and financial accommodation provided for consideration, which are typically offered by banks or payment service providers during a retailer’s checkout process.
2. I am a retailer and offer Buy Now, Pay Later products from cooperation partners. What do I need to consider?
You are considered a credit intermediary if, in the course of your business and in return for consideration – whether in the form of commission or other economic benefits – you assist your customers in concluding a general consumer credit agreement.
Any form of involvement is sufficient: actively arranging the credit, establishing contact with the creditor, providing advice or otherwise assisting the consumer in concluding the agreement. All of these activities may be sufficient.
The decisive question is therefore whether you receive remuneration for the intermediation.
If your economic benefit consists solely of increased sales of goods or services and you receive no remuneration from the creditor or a third party for the intermediation, you are not a credit intermediary within the meaning of section 34k GewO.
Example: BNPL in an online checkout
You operate an online shop. At checkout, your customers can choose not only advance payment and credit card payment but also a BNPL option (“Pay later”, “Pay in instalments”) provided by a third party. If the customer selects this payment method and concludes a deferred payment or instalment agreement with the BNPL provider and you receive a commission from the BNPL provider for this, you are a credit intermediary within the meaning of section 34k GewO.
“Remuneration” in this context includes not only traditional cash commissions, but also marketing subsidies, free provision of software or other benefits granted to you by the creditor.
If you, as a retailer, offer an instalment purchase or purchase on account yourself, you are not a credit intermediary but may instead be a creditor.
3. Do all retailers require authorisation?
No. Microenterprises and small and medium-sized enterprises (SMEs) within the meaning of EU Recommendation 2003/361/EC are exempt from the authorisation requirement under section 34k GewO where they carry out the intermediation activity solely to finance sales of goods concluded or services provided by them.
4. What do I, as a retailer, need to demonstrate in order to obtain authorisation?
Authorisation will only be granted if you can demonstrate the following:
- reliability of the applicant and the management;
- sound financial circumstances; and
- successful completion of a professional competence examination administered by the Chamber of Industry and Commerce (IHK), covering the professional and legal principles of intermediation as well as customer advice.
5. Who has to take the professional competence examination?
The required proof of professional competence does not necessarily have to be provided by the owner personally.
As a rule, you can delegate the examination to senior employees, provided that:
- a sufficient number of employees take the examination;
- these senior employees supervise the employees directly involved in the intermediation activities; and
- these senior employees are authorised to legally represent the company.
Important: There is also a continuing professional development obligation, which may likewise be delegated to the senior employees who have demonstrated the required professional competence.
Grandfathering provision: Incidentally, anyone who has continuously worked as a credit intermediary since 1 January 2021 and can provide evidence of this does not need to take a new professional competence examination. The continuing professional development obligation nevertheless still applies.
6. By when do I need to deal with all of this?
The rules will apply from 20 November 2026.
For future credit intermediaries under section 34k GewO, the specific deadline essentially depends on whether they already hold an authorisation under section 34c GewO:
- Existing section 34c intermediaries: They may continue to use their existing authorisation until 19 November 2027 at the latest, provided that they have applied for authorisation under section 34k GewO by the end of 31 May 2027;
- Retailers without section 34c authorisation: Businesses that arrange the conclusion of credit agreements solely for the purpose of sales financing must likewise apply for authorisation by 31 May 2027. They may provisionally continue their activities while the application is being processed.
7. What are the consequences of non-compliance?
Carrying out activities without the required authorisation under section 34k GewO constitutes an administrative offence under German trade law and may result in a fine.
8. What is the next step?
Whether you qualify as a credit intermediary depends on many details:
Do you receive remuneration for the intermediation? Do you only intermediate consumer credit/financial accommodation relating to your own goods/services? Are you an SME? How are commissions and remuneration structured? Do the BNPL offers you provide qualify as consumer credit?
We would be pleased to assist you in analysing your business model and adapting it to the new requirements in a legally compliant manner.
