Matt Welton’s Post

Chase Halts Credit Card Payments for BNPL Installments: A Critical Move In a significant policy shift, JPMorgan Chase has barred its customers from using credit cards to make Buy Now, Pay Later (BNPL) installment payments. This decision impacts widely-used BNPL services like Klarna, Afterpay, and Affirm. Chase’s new policy highlights mounting concerns over the financial risks associated with BNPL schemes, which often encourage consumers to take on multiple loans in addition to their existing credit card debt. 🔗 Read More: https://lnkd.in/eA5WisUg #fintech #BNPL #creditcard #money #payment

The US Consumer Financial Protection Bureau determined that BNPL providers need to follow same regulations as Credit Card providers. Learn more in this week’s blog post. . . . . . #bnpl #buynowpaylater #cfpb #us #regulation #creditcard #merchant #merchantservices #business #consumer #alto #altopay

Chase customers will soon be prohibited from using their credit cards to pay for third-party BNPL instalment plans. The US bank informed credit cardholders on their latest statements, that effective October 10, 2024 this will goes into place. Payments to these instalment plans (e.g., Klarna, AfterPay, etc.) using a Chase credit card will from then on be declined. The bank offers its own BNPL feature, Chase Pay Over Time, which lets users break up credit card purchases into instalments. More evidence on the profitability of the BNPL system for providers. (Image by US News) #Fintech #BNPL #CreditCards #Chase #DigitalPayments #Finance

New CFPB Rule Extends Credit Card Protections to Buy Now, Pay Later Loans The Consumer Financial Protection Bureau (CFPB) has issued a new rule ensuring that “buy now, pay later” (BNPL) loans will soon offer the same protections as credit card users. This revised guidance mandates that BNPL providers, such as Affirm and Klarna, must issue prompt refunds on returns, provide comprehensive billing statements, and allow repayment pauses amid charge disputes. While major BNPL lenders largely support the ruling, they emphasize that BNPL plans and credit cards are distinct products that require different protections. This change, set to take effect in two months under the Truth in Lending Act, will not alter how BNPL companies report to credit bureaus. #ConsumerProtection #BNPL #CFPB #Finance #Affirm #Klarna #FinancialRegulation

#sueknowsthescore is back this week, and we are starting with #bnpl - and the delinquencies that #debt is seeing in Q1 2024. 📈 Over 18% of BNPL users missed a payment, with 29% saying they spent more than they should have .... a #riskpredictor for future delinquencies. 🔮 #skts covered this #phantom debt a few months ago, and I will be revisiting it all week as there are significant changes coming. One firm overseas recently shut down, and Apple announced shuttering their own version just weeks ago. ⚠️These largely unregulated loan types are available with a #softinquiry🪶 ⚠️⚠️They typically have 4 months of payments ➡️⬅️ ⚠️⚠️ 🚩They are largely unreported on #creditreports 🙅♀️ ⚠️⚠️ 🚩🚩And unless the user is making their payments, a #mortgagelender cannot determine the amount of debt the potential #homebuyer may have. 👻👻 Stay tuned this week as #sueknowsthescore tackles the #bnpl phenom and how it may impact #mortgagelenders all week! https://lnkd.in/gZN2DuUf #mortgageunderwriting #creditscores #risk Michael Hammond JD, CMT ☘️ Suzy Lindblom Brian Vieaux, CMB Joseph Dahleen Kendall Lanier Michelle Rice Jeanne Kelly Roy George, CMB®Susan Hartsock Shawn Jobe, CMSP

The Consumer Financial Protection Bureau (CFPB) today (May 22) issued an interpretive rule that confirms that Buy Now Pay Later (BNPL) lenders are credit card providers! BNPL lenders such as Klarna, Afterpay and Affirm should be treated in some ways like credit card providers, according to one US financial regulator - CFPB. Like credit card providers, BNPL firms must investigate disputes, refund returned products or voided services, and provide billing statements. Latest interpretation brings Buy Now, Pay Later (BNPL) companies closer to the regulatory framework of credit card providers, although BNPL firms are not required to assess consumers' ability to repay short-term installment loans. For some time, BNPL providers have anticipated greater regulation. The global BNPL market is projected to grow from $37.19 billion in 2024 to $167.58 billion by 2032, as per the recent report. This move marks a significant step in integrating BNPL firms into the existing regulatory landscape, ensuring fair competition and consumer protection. #creditcards #BNPL #ConsumerProtection #Credit #Klarna #Regulations #Fintech

A major player in the Buy Now, Pay Later (BNPL) industry, Affirm, is urging the Consumer Financial Protection Bureau to develop specific regulations to avoid confusion for companies and consumers. Affirm opposes the proposal to treat BNPL transactions like credit card loans. They emphasize the importance of tailored rules for BNPL to ensure clarity and consumer protection. 💳 They're also highlighting the complexities of applying general credit card regulations to the BNPL model, advocating for regulations designed for BNPL products' unique characteristics. As the industry eagerly anticipates regulatory clarity, the debate rages on about how to best serve consumers while upholding compliance and transparency. Let us know your thoughts in the comments below! 💬 🔗 https://hubs.ly/Q02JChrr0 #BNPL #Regulations #ConsumerProtection

With Buy Now, Pay Later (BNPL) gaining immense popularity, the recent ruling by the CFPB is a significant win for consumers. BNPL lenders are now classified as credit card providers, ensuring key protections such as the right to dispute charges, request refunds, and receive billing statements. This marks a positive stride towards a fairer BNPL market. According to recent data, approximately 57% of BNPL users fall within the 18-35 age bracket, many of whom are new to credit. It would be beneficial if BNPL lenders reported to credit bureaus, aiding young consumers in building credit history and providing lenders with a more comprehensive view for future credit evaluations. Read more about the CFPB ruling at CNBC: https://lnkd.in/eyKjiUbK #BNPL #ConsumerFinance #CreditBuilding #Fintech

Banks Gunning for BNPL (Buy Now Pay Later) JPMorgan Chase and Citibank are now competing with established buy-now, pay-later (BNPL) providers like Klarna and Affirm. BNPL allows shoppers to pay over time, often interest-free. However, tougher regulations, effective since July 30, require BNPL companies to address consumer disputes and provide clearer terms. In 2022, $60 billion in BNPL loans were issued in the US. Yet, rising interest rates mean BNPL providers are now offering longer payment plans with higher costs. Meanwhile, banks are developing products that integrate BNPL-like features into existing credit cards. Get info how you can make extra income online: https://lnkd.in/e__fiSjS

I get this question all the time- "Should we launch BNPL on our debit card or credit card?" If this question has crossed your mind, then this post is for you! #bnpl