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Consumers who are scraping by and those who are
financially stable are drawn to the repayment terms and I suspect many of these are
budgeting benefits, as well as the low-cost of using BNPL, the same merchants who balk at
J.D. Power explained. In fact, the firm found consumers
from across the "financial health spectrum" are happy paying 2 percent to 4 percent
users of BNPL, and all are drawn by the same primary
reason: "they like the repayment terms." per transaction in card interchange.
Washington weighs in But that's a different discussion
for a different day.
Still, there is considerable consternation around BNPL. The
Consumer Financial Protection Bureau, not surprisingly,
raised concerns over what it sees as inconsistent
consumer protections and the risk of consumers getting intended to be glossy, tech-savvy alternatives to
overextended. Lawmakers have taken notice, too. In early traditional loan products without adhering to the robust
November a House Financial Services subcommittee held consumer protection laws and regulations in place for
a hearing on the risks and benefits of BNPL and other banks and credit unions," CUNA wrote in a statement to
emerging fintech cash flow products. the subcommittee.

The Credit Union National Association, a credit union As we look to 2024, it's a safe bet we'll be hearing more
trade group, was among those urging lawmakers to lay from Congress and the CFPB on this
down some regulatory guardrails, like those credit unions topic.
and banks must operate within.
Patti Murphy, self-described payments maven of the fourth estate, is
"CUNA remains concerned that the vast majority of senior editor at The Green Sheet. She also co-hosts the Merchant Sales
BNPL providers remain unregulated and are increasingly Podcast and is president of ProScribes Ink (www.proscribes.net).
engaged in financial activities by offering products

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