Buy Now, Pay Later (BNPL) options are proliferating, yet consumer understanding varies with many not viewing BNPL as credit. California is the only state to require certain providers to comply with lending laws. CFA is especially concerned about how products may use promises of limited or no credit checks to entice consumers with thin or no credit files. This project would explore consumer knowledge, usage of BNPL, and how BNPL may affect financial security through a statewide survey. CFA and partner organizations would use the results to develop education about BNPL and other credit products. The project will end with a stakeholder roundtable to discuss how these products can best meet the needs of consumers with necessary protections.
Consumer Federation of America
Buy Now, Understand Later? Consumer Knowledge of Buy Now, Pay Later Products
Consumer Products Fund, 2022
Advocacy ; Technology/Product/Service ; Education