JPMorgan Chase is set to block credit card payments for third-party Buy Now, Pay Later (BNPL) loans starting October 10, a move that impacts users of popular BNPL services like Klarna, Affirm, and Afterpay. The bank urges its customers to update their payment methods to avoid missed payments and late fees. This strategy aims to promote JPMorgan's own BNPL service, which allows credit card users to split payments into installments directly through the Chase app. The decision reflects growing concerns over the credit risk associated with BNPL loans and aligns with similar policies from other financial institutions like Capital One and American Express. Regulatory bodies like the Consumer Financial Protection Bureau (CFPB) are also scrutinizing BNPL loans, with plans to classify them as credit cards to enforce stricter lending rules. As the BNPL market continues to grow, this shift may compel other banks to adopt similar policies, while also pushing users toward proprietary BNPL services.
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