The American Financial Services Association's (AFSA) State Government Affairs team has released its October white paper, focusing on the "buy now, pay later" (BNPL) services. This release comes amid the growing popularity of BNPL services, driven by the increase in online shopping.
BNPL services offer consumers the option to borrow only what they need and pay it back in four installments. While this model is relatively new, financing purchases is not a novel concept. Initially used for larger items, BNPL has expanded to include smaller purchases such as clothing and food delivery.
The rapid expansion of BNPL has caught the attention of regulators. The Consumer Financial Protection Bureau (CFPB) and states like Massachusetts and New York are considering legislation that could lead to increased scrutiny of these services.
This white paper, along with others from SGA, is available in the SGA resources section on AFSA’s website.