CFPB Actions Updated
The regulator said that the banks did not properly investigate consumer complaints consistently or on time and did not provide reimbursements for fraud or errors as required by Regulation E of the Electronic Funds Transfer Act.
Area of Interest: Buy Now Pay Later (BNPL)
FIS and Affirm are BNPL Partners for Debit Cards
Cardholders will be able to use an issuer’s mobile app or visit the issuer’s digital banking site to select BNPL for a purchase they just made. Or they can use those same channels to preauthorize an amount for BNPL, a feature that would likely be used for more expensive purchases.
Funding for Affirm’s Installment and BNPL Loans
Unlike full-service banks, which can use consumer deposits to fund loans, Affirm and similar companies must seek wholesale funding through capital markets.
CFPB Rules on BNPL
The latest interpretive rule from the CFPB on May 22, 2024, subjects buy now, pay later (BNPL) companies to the Truth in Lending Act (TILA), Regulation Z, subpart B which also pertains to credit card issuers.
BNPL Investment & Acquisition Deals in 2023
Transactions for which the monetary value is known had a cumulative value of $2.68 billion.
Marqeta BNPL Partnerships
The ability to provide virtual card payments for BNPL transactions has opened a new opportunity for card account processors. Increasingly, online and in-store retailers feel compelled to provide their customers with real-time credit decisioning so they can deliver instant approval for a BNPL transaction at the time of purchase, even when they’ve had no prior relationship with the consumer.
Affirm’s Visa Debit Card
Buy now, pay later (BNPL) specialist Affirm is actively promoting a Visa branded debit card to its existing 16 million account holders. The Affirm Card, which is connected to the Affirm app, can be used to initiate BNPL loans at all 15 million in-store and online merchant acceptance locations in the Visa network in the […]
BNPL Investments & Acquisition Deals
Since January 2022 there have been 39 transactions in the buy now, pay later (BNPL) industry in 20 countries. Among those transactions, 35 were investments or credit facility deals and 4 were acquisitions. The acquisitions were: UK-based Zopa Bank acquired UK-based BNPL provider DivideBuy, Japan-based MUFG Bank acquired 70% of Japan-based BNPL provider Kanmu, FinAccel […]
Investments & Acquisitions in 2022
There were 700 transactions in card payments and related fields in 2022. There were 382 transactions in the first half of the year and 318 in the second half. Those deals occurred in 68 countries.
Jifiti’s White Label BNPL Platform Adds B2B
Over the last decade, dozens of buy now, pay later (BNPL) specialists worldwide have focused on signing merchants as distribution channels for their consumer lending businesses. Growth has been explosive, and BNPL fintechs attracted eager investors.
