The Financial Analyst

CFPB Reclassifies BNPL Lenders as Credit Card Providers, Shaking Up Fintech

June 7, 2024

Banks & Lenders, Financial Services, Merchants

The Consumer Financial Protection Bureau (CFPB) recently announced a new interpretive rule classifying BNPL lenders as credit card companies. These fintech lenders now face strict new rules – from resolving billing disputes to issuing refunds.

It’s a massive shakeup that could kneecap smaller BNPL players without deep pockets for compliance. While protecting consumers, the crackdown paves the way for banks and other regulated lenders to seize market share. Yaacov Martin, Jifiti’s CEO, sees this as a game-changing opportunity for banks and lenders.

Read more in The Financial Analyst.

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