WASHINGTON, D.C. – Today, the Financial Technology Association (FTA) submitted a comment letter in response to the Consumer Financial Protection Bureau’s market monitoring inquiry into Buy Now Pay Later (BNPL) providers. FTA represents several leading providers of BNPL, including Afterpay, Figure, Klarna, Sezzle, and Zip.

“Buy Now Pay Later is a valuable tool for consumers to manage their cash flow and avoid unnecessary interest and fees,” said Penny Lee, Chief Executive Officer of the Financial Technology Association. “BNPL services are subject to federal and state consumer protection laws and regulations and provide low-risk, low-cost payment options to consumers. We welcome engagement with the CFPB to ensure consumer interests are properly served.” 

The “Pay-in-Four” model offered by FTA members Afterpay, Klarna, Zip, and Sezzle allows consumers to pay for a purchase in four installments over six to eight weeks. Unlike revolving debt products like credit cards or payday loans, BNPL relies on customer repayment success, not failure. Approximately 95 percent of BNPL users don’t experience late charges. 

At a time when the average American can’t afford a $400 emergency, services like BNPL provide alternative credit options that don’t put them in further debt because of high-interest rates and fees. Studies indicate that credit card providers make the majority of their revenue from interest charges and can cost customers up to 225 percent of the product purchase value in interest. 

As our submission notes, FTA’s BNPL member companies are committed to advancing consumer industry standards that safeguard consumers and ensuring that product offerings, rates, fees, and terms are disclosed in clear, concise, transparent, and accurate language. Notably, a recent survey of BNPL users found that only one percent (1%) had trouble understanding the terms and conditions of the provided BNPL service. 

Read the FTA’s letter to the CFPB here.


The Financial Technology Association (FTA) champions the transformative role of financial technology for American consumers, businesses, and the economy. Representing industry leaders, FTA elevates fintech’s power to increase competition and drive financial innovation through responsible products and services. As our members’ voice in Washington, FTA advocates for the modernization of regulation to support greater access to financial services. Learn more at ftassociation.org.