Buy Now, Pay Later lenders just got a major shakeup from the CFPB.
In a new ruling, BNPL providers have been classified as credit card issuers, requiring them to follow strict consumer protection laws like dispute resolution and refund policies.
According to Yaacov Martin, CEO of Jifiti, this marks a shift in the BNPL market as smaller BNPL fintechs lack the resources to comply with the CFPB’s new rule. With their existing compliance and low cost of capital, banks are best positioned to dominate the space in the new regulatory environment.
For consumers, the CFPB’s rule means more transparency and confidence in using BNPL services.
Read more about Yaacov’s insights in the latest article in Finovate
