The pay later revolution has reshaped consumer credit by offering shoppers the allure of instant gratification with the added value of deferred payments. But its business model is quietly shifting, with shoppers footing part of the bill.
When the industry first emerged more than two decades ago, it relied largely on fees that banks and FinTech firms charged to merchants that accepted the payment method. Retailers were willing to suck up those costs because they saw buy now, pay later (BNPL) as a powerful tool to attract new customers and grow sales.
Consumers facing cash flow shortages are more likely to use pay later services compared to their financially stable counterparts, highlighting a divide in payment preferences driven by economic circumstances.
PYMNTS Intelligence’s “How People Pay Report: Cash Flow Shortages Drive Consumers’ BNPL Usage” found that buy now, pay later (BNPL) plans are increasingly serving as tools for individuals with limited access to traditional credit, enabling them to bridge financial gaps and cover everyday necessities.
The first months of 2025 have brought a number of notable developments in TCPA litigation and compliance, kicking off with the eleventh-hour announcement by the FCC on January 24 that it would postpone the effective date of the One-to-One Consent Rule by one year.
As reported by BloombergLaw, last week, Federal Trade Commission Commissioners made statements indicating a shift in the agency’s priorities under the Trump Administration to focus enforcement efforts on existing federal privacy laws while foregoing broader definitions of consumer harm, and fostering AI innovation.
The Government Accountability Office has agreed to investigate recent CFPB moves to fire more than 1,400 employees and the impact it and other agency actions have had on the bureau’s ability to operate.
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