Oregon proposes BNPL rules

Oregon is moving to treat Buy Now, Pay Later (BNPL) providers like traditional lenders. New proposed rules from the state's Division of Financial Regulation would require BNPL firms to obtain payday or consumer finance licenses. This is part of a growing national trend where state regulators are no longer viewing 'pay-in-four' products as separate from standard consumer loans. For retailers, this could mean changes in how you offer these products to customers in Oregon. If these rules pass, lenders will have to comply with stricter disclosure requirements and interest rate caps similar to those in the payday lending space. The Financial Technology Association, which represents giants like Affirm and Klarna, is fighting the proposal. They argue that BNPL products are fundamentally different from high-interest payday loans and that these rules could limit consumer access to interest-free credit. However, if Oregon succeeds, it follows California and Massachusetts in tightening the leash on the industry. Retailers should prepare for a future where BNPL providers face higher compliance costs, which could eventually lead to changes in merchant fees or tighter credit approvals for your customers.

Source: Payments Dive

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