In response to regulatory scrutiny, Zip and Four Technologies have revamped their buy now, pay later (BNPL) strategies in Maryland after being cited for operating without the necessary licenses. In May, Four Technologies faced a $45,000 fine for violating state lending laws and was required to return $184,000 to over 2,000 Maryland consumers. Meanwhile, Zip has temporarily halted its services in the state due to a lack of the required consumer lending license. Maryland's financial regulations are complex, with some BNPL companies exempt from licensing while others must comply. Zip's CEO, Cynthia Scott, stated that the company is working diligently to meet the regulatory requirements and aims to resume services as soon as possible. Four Technologies has since acquired the necessary license to operate in Maryland. Other BNPL companies like Affirm, Afterpay, and Klarna have confirmed their compliance with Maryland's licensing requirements, ensuring they can continue their operations without interruption.
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