BNPL can lead to bad debt and overspending! Time for more regulation and what does this mean for retailers?
In the USA, the Consumer Financial Protection Bureau (CFPB) is responsible for consumer protection in the financial sector. It has recently published a new rule that will have both positive and negative impacts on retailers and Buy Now, Pay Later (BNPL) providers. This new rule will potentially change how disputed purchases are dealt with, the need to offer refunds, and the provision of monthly billing statements. This new “interpretive” rule takes a view of what constitutes a “credit card” by likening the “digital user accounts” that consumers use to access BNPL credit products to traditional credit cards.
In this article, Mark Beresford (Head of the Retail Practice, London), looks at how this CFPB ruling on BNPL has the potential implications for North American merchants. It also asks, could the FCA in the UK and the EU regulators look at how the USA is regulating BNPL and learn a lesson or two.
Retail
Payment Optimisation
by Mark Beresford | Jun 03, 2024
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