Driven by an increase in online and mobile app shopping during the COVID-19 pandemic, we have witnessed the explosion of the BNPL market.
The boom has led to scrutiny from financial services regulators concerned about the lack of specific rules and the potential risks to consumers. Federal regulators in the USA have taken a largely hands-off approach to the BNPL sector in the past, but recent noteworthy shifts have suggested regulation is on the horizon.
We expect to receive further information in the coming months.