{"id":1126205,"date":"2021-12-16T18:14:41","date_gmt":"2021-12-16T23:14:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1126205"},"modified":"2021-12-16T18:14:44","modified_gmt":"2021-12-16T23:14:44","slug":"federal-government-launches-probe-into-buy-now-pay-later-industry","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-government-launches-probe-into-buy-now-pay-later-industry\/","title":{"rendered":"Federal Government Launches Probe Into \u2018Buy Now, Pay Later\u2019 Industry"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-government-launches-probe-into-buy-now-pay-later-industry%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1126205&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The federal government is launching a probe into the nascent \u201cBuy Now, Pay Later\u201d industry.<\/p>\n<p>Buy Now, Pay Later \u2014 a short-term financing option that <a href=\"https:\/\/www.cardify.ai\/reports\/bnpl-holidays-2021\">lets<\/a> consumers make purchases and pay at a future date, often interest-free \u2014 is increasing in popularity. Typically offering their services at checkout, BNPL companies such as Klarna, Afterpay, and Affirm have <a href=\"https:\/\/wfhadviser.com\/guides\/buy-now-pay-later-bnpl-market-analysis-overview-and-leading-companies-by-use-case\/\">diverted<\/a> between $8 billion and $10 billion in annual revenue away from banks.<\/p>\n<p>Citing concerns about \u201caccumulating debt, regulatory arbitrage, and data harvesting in a consumer credit market already quickly changing with technology,\u201d the <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/consumer-financial-protection-bureau-opens-inquiry-into-buy-now-pay-later-credit\/\">Consumer Financial Protection Bureau<\/a> announced on Thursday that it will \u201ccollect information\u201d from Affirm, Afterpay, Klarna, PayPal, and Zip.<\/p>\n<p>\u201cThe law requires that the CFPB monitor consumer financial markets and enables the agency to require market players to submit information to inform this monitoring,\u201d said the agency in a statement. \u201cThe CFPB expects to publish aggregated findings on insights learned from this inquiry. Today\u2019s orders seek to illuminate the range of these consumer credit products and their underlying business practices.\u201d<\/p>\n<p>\u201cBuy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too,\u201d commented CFPB Director Rohit Chopra in the release. \u201cWe have ordered Affirm, Afterpay, Klarna, PayPal, and Zip to submit information so that we can report to the public about industry practices and risks.\u201d<\/p>\n<p>As <a href=\"https:\/\/www.dailywire.com\/news\/more-americans-than-ever-will-use-buy-now-pay-later-plans-for-holiday-purchases\">The Daily Wire<\/a> reported last month, American consumers plan to rely upon Buy Now, Pay Later throughout the holiday season. According to a survey from <a href=\"https:\/\/www.cardify.ai\/reports\/bnpl-holidays-2021\">Cardify<\/a>:<\/p>\n<p>Nearly half (45.1%) of users said they will be paying for part \u2014 or all \u2014 of this year\u2019s holiday purchases using BNPL. When asked to share the full list of payment methods they\u2019ll be using, BNPL came in third place behind debit (65.7%) and credit cards (54.6%). Consumers would rather pay for holiday purchases using BNPL than cash (31.5%). Among those who plan to use BNPL this holiday season (\u201cHoliday BNPL Shoppers\u201d), 46.6% will use BNPL for more than half (37.8%) or even all (8.6%) of their holiday purchases.<\/p>\n<p>Data also suggests that users are increasingly comfortable with the service, as 51.1% of Holiday BNPL Shoppers plan to use BNPL for more of their shopping this holiday season than they did last holiday season. While 38.9% plan to use it the same amount, only a minority (10.1%) plan to use it less. If BNPL was not an option this holiday season, those who planned to use it said they\u2019d resort to a debit card (51.6%), credit card (49.9%), or be forced to spend less (45.8%).<\/p>\n<p>\u201cIt\u2019s become more mainstream,\u201d explained Cardify CEO Derrick Fung as reported by <a href=\"https:\/\/www.cnbc.com\/2021\/11\/29\/holiday-shopping-2021-more-than-half-of-americans-are-going-into-debt.html\">CNBC<\/a>. \u201cThe consumer over the last 12 months has become more compulsive and BNPL products are the result of us being locked up for too long and wanting more instant gratification.\u201d<\/p>\n<p>Beyond the new deferred payment methodology, Americans have been eager to receive short-term cash infusions in the form of government stimulus checks. A <a href=\"https:\/\/www.dailywire.com\/news\/moneyforthepeople-petition-for-2000-monthly-covid-checks-nears-3-million-signatures\">survey<\/a> from Quinnipiac University in January found that 78% of Americans \u2014 including 90% of Democrats and 64% of Republicans \u2014 approved of the $1,400 checks supported by President Biden.<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The federal government is launching a probe into the nascent \u201cBuy Now, Pay Later\u201d industry.Buy Now, Pay Later \u2014 a short-term financing option that lets consumers make purchases and pay at a future date, often interest-free \u2014 is increasing in popularity. Typically offering their services at checkout, BNPL companies such as Klarna, Afterpay, and Affirm have diverted between $8 billion and $10 billion in annual revenue away from banks.Citing concerns about \u201caccumulating debt, regulatory arbitrage, and data harvesting in a consumer credit market already quickly changing with technology,\u201d the Consumer Financial Protection Bureau announced on Thursday that it will \u201ccollect information\u201d from Affirm, Afterpay, Klarna, PayPal, and Zip.\u201cThe law requires that the CFPB monitor consumer financial markets and enables the agency to require market players to submit information to inform this monitoring,\u201d said the agency in a statement. \u201cThe CFPB expects to publish aggregated findings on insights learned from this inquiry. Today\u2019s orders seek to illuminate the range of these consumer credit products and their underlying business practices.\u201d\u201cBuy now, pay later is the new version of the old layaway plan, but with modern, faster twists where the consumer gets the product immediately but gets the debt immediately too,\u201d commented CFPB Director Rohit Chopra in the release. \u201cWe have ordered Affirm, Afterpay, Klarna, PayPal, and Zip to submit information so that we can report to the public about industry practices and risks.\u201dAs The Daily Wire reported last month, American consumers plan to rely upon Buy Now, Pay Later throughout the holiday season. According to a survey from Cardify:Nearly half (45.1%) of users said they will be paying for part \u2014 or all \u2014 of this year\u2019s holiday purchases using BNPL. When asked to share the full list of payment methods they\u2019ll be using, BNPL came in third place behind debit (65.7%) and credit cards (54.6%). Consumers would rather pay for holiday purchases using BNPL than cash (31.5%). Among those who plan to use BNPL this holiday season (\u201cHoliday BNPL Shoppers\u201d), 46.6% will use BNPL for more than half (37.8%) or even all (8.6%) of their holiday purchases.Data also suggests that users are increasingly comfortable with the service, as 51.1% of Holiday BNPL Shoppers plan to use BNPL for more of their shopping this holiday season than they did last holiday season. While 38.9% plan to use it the same amount, only a minority (10.1%) plan to use it less. If BNPL was not an option this holiday season, those who planned to use it said they\u2019d resort to a debit card (51.6%), credit card (49.9%), or be forced to spend less (45.8%).\u201cIt\u2019s become more mainstream,\u201d explained Cardify CEO Derrick Fung as reported by CNBC. \u201cThe consumer over the last 12 months has become more compulsive and BNPL products are the result of us being locked up for too long and wanting more instant gratification.\u201dBeyond the new deferred payment methodology, Americans have been eager to receive short-term cash infusions in the form of government stimulus checks. A survey from Quinnipiac University in January found that 78% of Americans \u2014 including 90% of Democrats and 64% of Republicans \u2014 approved of the $1,400 checks supported by President Biden.The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1126205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1126205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1126205"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1126205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1126205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1126205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1126205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}