The buy-now, pay-later (BNPL) industry, which has grown significantly since the launch of platforms like Klarna and Affirm, is now confronting a series of adult challenges, notably increased regulation and fierce competition from traditional banks. Initially designed to provide a simpler payment option for consumers, particularly Millennials, BNPL services are now being subjected to regulations similar to those governing credit cards. This shift comes as major banks like JPMorgan Chase and Citibank introduce their own BNPL-like products, allowing consumers to manage larger purchases while still using their credit cards for everyday expenses. The new regulations mandate that BNPL companies address consumer disputes and provide clearer disclosures, which may alter the consumer experience. As banks begin to offer point-of-sale financing options, the question arises: will consumers continue to favor BNPL fintechs, or will they shift to the more established credit card offerings? The evolving landscape suggests that both sectors must adapt to retain their customer bases.
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