Phil Goldfeder, CEO of the American Fintech Council, has commented on the Buy-Now-Pay-Later (BNPL) provisions included in New York State's 2025 budget. He stated that appropriate regulation for innovative financial services should promote clarity and a level playing field to enhance consumer choice and transparency.
Goldfeder acknowledged that the BNPL legislation proposed by Governor Kathy Hochul is a significant step towards pragmatic regulation. The requirement for underwriting every transaction aligns with existing standards set by the American Fintech Council, which represent industry best practices. However, he expressed concerns about certain aspects of the legislation potentially leading to unintended consequences such as limiting consumer choice and reducing responsible access to credit.
He emphasized that responsible BNPL products offer flexible and transparent credit alternatives without revolving debt. These products often provide interest-free financing without late fees or hidden charges. Goldfeder raised concerns over unclear definitions within the new law, which might inadvertently encompass additional products and improperly apply credit card regulations to pay-over-time options.
Goldfeder concluded by expressing eagerness for continued collaboration with Governor Hochul, the Department of Financial Services, and legislative leaders to develop consistent regulatory standards ensuring New Yorkers' access to responsible financial products.