WASHINGTON, D.C. – The Financial Technology Association (FTA) released the following statement on the report released today by the Consumer Financial Protection Bureau (CFPB) examining the Buy Now Pay Later market:
“This report confirms our own member company data showing that consumers are using BNPL responsibly and repaying in full and on time,” said Penny Lee, President and CEO of the Financial Technology Association. “The CFPB’s report relies on real transaction data – not survey responses – about true pay-in-four products. BNPL use continues to grow sustainably and meet the needs of Americans looking to manage spending with no interest, revolving balances, or hidden fees.”
The CFPB report highlights how only 4.1 percent of BNPL loans were assessed a late fee, and 1.83 percent of loans were charged off or uncollectible. This compares to the 60% credit card holders carrying revolving debt at interest rates of up to 36%. As Americans are now carrying $1.23 trillion in credit card debt, they welcome options like BNPL, which provide safer and more transparent ways to pay. While more Americans are choosing BNPL and using it responsibly, BNPL still represents only 1% of credit card spending.
To learn more, read Just the Facts on Buy Now Pay Later and Fintech Explained: How BNPL Helps Shoppers Manage Their Spending This Holiday Season.
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The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.