Locks with the disease created good conditions for the increase of the current quick sale / final payment loans offered online by Affirm, Klarna, Afterpay, PayPal, Zip and Sezzle, among others. But BNPL started to grow in many ways as the disease subsided.
The latest innovation from BNPL fintechs is technology that allows merchants to offer customers instant cash on a specific purchase at the point of sale, with personal information and without score- Debt. The ease of financing individual purchases is preferred by many consumers as a substitute for traditional credit cards, but it presents complex problems that are still being studied by the authorities.
The popularity of BNPL loans continues – 28% of US consumers used a BNPL service in August 2022, up from 18% at the beginning of the year, according to the report. Consumer Reports — but the funding sources, loan quality and terms of most of BNPL’s loans are changing.
The Consumer Financial Protection Bureau stopped issuing rules for this unregulated sector after BNPL was run for so long. market surveillance research in 2022, but the agency look closely for signs of consumer abuse from borrowers many BNPL loans are not monitored by credit bureaus. This holiday seasonThe CFPB issued a statement warning consumers of the BNPL scandal.
The coming year will be a test of survival for BNPL’s most secure fintechs. The new competition comes from Apple and others, and operators will need to adjust products and prices to meet the new pressure – including from the banks – in a better economy and in the midst of rising of interest.