Great Britain is set to implement new regulations for Buy Now, Pay Later (BNPL) providers under the recent Labour leadership, aiming to enhance consumer protection and provide clarity for the sector. This initiative follows a prolonged delay in regulatory action that began three years ago, prompted by alarming findings from a review by Christopher Woolard, which revealed that over 10% of BNPL users were in arrears. The new economic secretary, Tulip Siddiq, emphasized the government's commitment to collaborating with stakeholders to outline forthcoming plans. Meanwhile, the U.S. is also moving towards stricter regulations, with the Consumer Financial Protection Bureau (CFPB) set to classify BNPL as credit card providers, which will require them to adhere to established consumer protections. As consumer satisfaction with BNPL remains high, with 79% reporting positive experiences, the need for regulation is seen as essential to safeguard users and ensure responsible lending practices.
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