BNPL groups ‘neutral’ on Illinois bill

Illinois is moving closer to implementing new rules for Buy Now, Pay Later (BNPL) providers, following in the footsteps of New York’s recent regulatory push. For retailers, this signals a shift in how your financing partners operate at the state level. The proposed legislation aims to bring BNPL under the umbrella of the state’s Consumer Installment Loan Act. This would likely require providers to obtain specific licenses and adhere to stricter reporting requirements regarding fees and consumer data. Unlike the pushback seen in other states, major industry groups like the Financial Technology Association are currently remaining 'neutral' on the bill. This suggests that the final rules might be more moderate than previous attempts. However, merchants should still prepare for potential changes in how BNPL offers are presented at the point of sale. If passed, your financing partners may need to update their disclosure language or adjust their approval processes to comply with Illinois law. This could slightly change the checkout flow for your customers in that state. Keeping an eye on these regional shifts is vital, as they often set the stage for how federal regulators like the CFPB will eventually handle BNPL nationwide.

Source: Payments Dive

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