The federal government is launching a probe into the nascent “Buy Now, Pay Later” industry.
Buy Now, Pay Later — a short-term financing option that lets consumers make purchases and pay at a future date, often interest-free — is increasing in popularity. Typically offering their services at checkout, BNPL companies such as Klarna, Afterpay, and Affirm have diverted between $8 billion and $10 billion in annual revenue away from banks.
Citing concerns about “accumulating debt, regulatory arbitrage, and data harvesting in a consumer credit market already quickly changing with technology,” the Consumer Financial Protection Bureau announced on Thursday that it will “collect information” from Affirm, Afterpay, Klarna, PayPal, and Zip.
www.dailywire.com/news/federal-government-launches-probe-into-buy-now-pay-later-industry