#bnpl

[mostlysignssomeportents]

The CFPB is genuinely making America better, and they're going HARD

On June 20, I'm keynoting the LOCUS AWARDS in OAKLAND.

Let's take a sec here and notice something genuinely great happening in the US government: the Consumer Finance Protection Bureau's stunning, unbroken streak of major, muscular victories over the forces of corporate corruption, with the backing of the Supreme Court (yes, that Supreme Court), and which is only speeding up!

A little background. The CFPB was created in 2010. It was Elizabeth Warren's brainchild, an institution that was supposed to regulate finance from the perspective of the American public, not the American finance sector. Rather than fighting to "stabilize" the financial sector (the mission that led to Obama taking his advisor Timothy Geithner's advice to permit the foreclosure crisis to continue in order to "foam the runways" for the banks), the Bureau would fight to defend us from bankers.

The CFPB got off to a rocky start, with challenges to the unique system of long-term leadership appointments meant to depoliticize the office, as well as the sudden resignation of its inaugural boss, who broke his promise to see his term through in order to launch an unsuccessful bid for political office.

But after the 2020 election, the Bureau came into its own, when Biden poached Rohit Chopra from the FTC and put him in charge. Chopra went on a tear, taking on landlords who violated the covid eviction moratorium:

https://pluralistic.net/2021/04/20/euthanize-rentier-enablers/#cfpb

Then banning payday lenders' scummiest tactics:

https://pluralistic.net/2022/01/29/planned-obsolescence/#academic-fraud

Then striking at one of fintech's most predatory grifts, the "earned wage access" hustle:

https://pluralistic.net/2023/05/01/usury/#tech-exceptionalism

Then closing the loophole that let credit reporting bureaus (like Equifax, who doxed every single American in a spectacular 2019 breach) avoid regulation by creating data brokerage divisions and claiming they weren't part of the regulated activity of credit reporting:

https://pluralistic.net/2023/08/16/the-second-best-time-is-now/#the-point-of-a-system-is-what-it-does

Chopra went on to promise to ban data-brokers altogether:

https://pluralistic.net/2024/04/13/goulash/#material-misstatement

Then he banned comparison shopping sites where you go to find the best bank accounts and credit cards from accepting bribes and putting more expensive options at the top of the list. Instead, he's requiring banks to send the CFPB regular, accurate lists of all their charges, and standing up a federal operated comparison shopping site that gives only accurate and honest rankings. Finally, he's made an interoperability rule requiring banks to let you transfer to another institution with one click, just like you change phone carriers. That means you can search an honest site to find the best deal on your banking, and then, with a single click, transfer your accounts, your account history, your payees, and all your other banking data to that new bank:

https://pluralistic.net/2023/10/21/let-my-dollars-go/#personal-financial-data-rights

Somewhere in there, big business got scared. They cooked up a legal theory declaring the CFPB's funding mechanism to be unconstitutional and got the case fast-tracked to the Supreme Court, in a bid to put Chopra and the CFPB permanently out of business. Instead, the Supremes – these Supremes! – upheld the CFPB's funding mechanism in a 7-2 ruling:

https://www.scotusblog.com/2024/05/supreme-court-lets-cfpb-funding-stand/

That ruling was a starter pistol for Chopra and the Bureau. Maybe it seemed like they were taking big swings before, but it turns out all that was just a warmup. Last week on The American Prospect, Robert Kuttner rounded up all the stuff the Bureau is kicking off:

https://prospect.org/blogs-and-newsletters/tap/2024-06-07-window-on-corporate-deceptions/

First: regulating Buy Now, Pay Later companies (think: Klarna) as credit-card companies, with all the requirements for disclosure and interest rate caps dictated by the Truth In Lending Act:

https://www.skadden.com/insights/publications/2024/06/cfpb-applies-credit-card-rules

Next: creating a registry of habitual corporate criminals. This rogues gallery will make it harder for other agencies – like the DOJ – and state Attorneys General to offer bullshit "delayed prosecution agreements" to companies that compulsively rip us off:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-creates-registry-to-detect-corporate-repeat-offenders/

Then there's the rule against "fine print deception" – which is when the fine print in a contract lies to you about your rights, like when a mortgage lender forces you waive a right you can't actually waive, or car lenders that make you waive your bankruptcy rights, which, again, you can't waive:

https://www.consumerfinance.gov/about-us/newsroom/cfpb-warns-against-deception-in-contract-fine-print/

As Kuttner writes, the common thread running through all these orders is that they ban deceptive practices – they make it illegal for companies to steal from us by lying to us. Especially in these dying days of class action suits – rapidly becoming obsolete thanks to "mandatory arbitration waivers" that make you sign away your right to join a class action – agencies like the CFPB are our only hope of punishing companies that lie to us to steal from us.

There's a lot of bad stuff going on in the world right now, and much of it – including an active genocide – is coming from the Biden White House.

But there are people in the Biden Administration who care about the American people and who are effective and committed fighters who have our back. What's more, they're winning. That doesn't make all the bad news go away, but sometimes it feels good to take a moment and take the W.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/06/10/getting-things-done/#deliverism

[bitchesgetriches]

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name

If you found this helpful, consider joining our Patreon.

[spawnartisticdirections]

If I buy some sexy boots, and take the pay by interest-free installments route, what are the pitfalls and downsides of doing so?

[kodytechnolab]

The Buy Now, Pay Later (BNPL) market has seen tremendous growth in recent years, but with it comes the need for regulation. As governments around the world look to protect consumers and mitigate risk, fintech businesses must stay informed of the latest BNPL regulatory changes.

This blog provides a comprehensive overview of the regulatory landscape, highlighting the potential risks and upcoming regulations that businesses must be aware of. With this knowledge, fintech businesses can adapt, comply, and thrive in the face of emerging regulations. Don't let the "Buy Now, Pay Later Bubble Burst" - stay informed and stay ahead of the game!

[ready-finance-trinidad-tobago]

Characteristics of a Consumer-Friendly Shopping Credit Plan

Consumer-Friendly Shopping Credit Plan

A shopping credit plan is a program offered by retail stores that allows customers to buy products from the store and make payments for the purchased items in affordable instalments. By shopping on credit, consumers experience many benefits. These include,

No need to spend large amount of money all at once

Enjoy easy repayments

Get access to high-end products

Shop even when you are low on funds

Take care of any emergency shopping with ease

In order to enjoy the benefits mentioned above, shoppers must research their options well before applying for a shopping credit solution. Make sure your shopping credit has the following necessary characteristics that will ensure a good shopping experience.

[ready-finance-guyana]

Shopping can be a lot of fun if the stress of payments and budget constraints are taken out of the equation. One of the easiest ways to shop while keeping your monthly finances stable is by signing up for a shopping credit plan.

The introduction of a shopping credit plan enhances convenience and reduces stress when making purchases. By opting for credit-based shopping, you can acquire the items you desire and postpone the payment to a later date, conveniently dividing it into manageable monthly instalments. This means,

You can afford expensive products like laptops, smartphones and home furniture

You need not empty your savings in order to buy high-value items

You don't have to save up for months before making a purchase

You can easily handle an emergency shopping

You can choose a repayment term that best fits your financial abilities

You can shop with fewer budget restrictions

Different stores have different terms and conditions that come with their shopping credit plans. So, research the pros and cons well and apply for one that is created with customer convenience in mind. Look for a credit plan with no hidden fees and low or no interest rates. By choosing a consumer-friendly shopping credit solution, you will be able to enjoy shopping while keeping repayments simple and easy.

[readyfinancedominica]

Shopping credit plans offer a convenient and hassle-free approach to shopping. Rather than paying the full amount upfront for your purchases, you have the option to divide the payment into manageable parts, and pay back in smaller monthly instalments. This innovative shopping system opens doors for customers to acquire essential items that may have otherwise been beyond their financial reach.

Store-offered shopping credit have quick approval time and come with very low or, in most cases, no interest rate. This means, even if you are shopping on credit, you won't be spending extra money on paying additional interest. Make sure to choose a store that does not charge any hidden fee such as transaction or processing fee.

For many individuals, saving up for months was required before they could afford expensive purchases such as large home appliances, furniture, smartphones, laptops etc. With the help of a shopping credit solution you can buy what you need immediately without causing any disruption to your monthly finances. While saving before spending is a good financial habit, there are times when a purchase needs to be done urgently. In such circumstances, opting for a shopping credit plan becomes a safe and smart alternative.

Rather than waiting and saving for months, shopping credit allows you to enjoy the benefits of your purchases right away. Choose a consumer-friendly and convenient shopping credit plan that comes with flexible repayment terms to make payments stress free.

[nationallawreview]

Lawsuit Challenges CFPB’s ‘Buy Now, Pay Later’ Rule

On Oct. 18, 2024, fintech trade group Financial Technology Association (FTA) filed a lawsuit challenging the Consumer Financial Protection Bureau’s (CFPB) final interpretative rule on “Buy Now, Pay Later” (BNPL) products. Released in May 2024, the CFPB’s interpretative rule classifies BNPL products as “credit cards” and their providers as “card issuers” and “creditors” for purposes of the Truth…

[bluespringsincometaxpreparation]

Holiday Shopping Trends: Buy Now, Pay Later Set to Break Records 💳 Key points to consider this holiday season: ▪️ BNPL spending is projected to reach $18.5 billion, up 11.4% from last year. ▪️ This outpaces the expected 8.4% rise in overall holiday spending. ▪️ BNPL allows purchases to be paid in installments, often over 4 payments. While BNPL offers flexibility, be aware of potential risks: ▪️ Some use credit cards for BNPL payments, potentially increasing debt ▪️ Credit card delinquency rates are at their highest since 2011 ▪️ Consumer watchdogs warn about possible debt cycles As you plan your holiday shopping: ▪️ Consider your budget and ability to meet future payments ▪️ Understand the terms of BNPL services ▪️ Explore alternative payment methods that suit your financial situation Responsible spending is key to long-term financial health. 🎁

[bitchesgetriches]

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name

Years ago Kitty and I did an interview with Glen James from My Millennial Money, a podcast out of Australia that answers the question “Will I ever get tired of listening to men with Australian accents talk about everything from true crime to investing?” (And that answer, to be clear, is a resounding haaayl nah.) You should listen to it! It’s great!

At the end of our conversation, Glen hit us with a curveball. “What do you think of Afterpay?”

“I don’t know her,” said we. And Glen, who is clearly gifted with The Sight, answered cryptically, “Ah. So it hasn’t made it to the States yet. Good luck, mates.” And then we asked him to say “1999” and giggled incessantly.

Flash forward to the present. Not only have we now heard of buy now pay later apps like Afterpay… we fucking hate them. Which means it’s time for another installment of Piggy Rails Against a Financial Outrage for 2,000 Words Or So.

Keep reading.

If you liked this article, join our Patreon!

[factoryjet]

How Offering Buy-Now-Pay-Later Can Transform Your E-commerce Sales Strategy

The e-commerce landscape is continuously evolving, with businesses competing for client attention. To flourish in this competitive market, providing convenient and flexible payment methods is critical for increasing sales and improving the overall shopping experience. One effective approach to accomplish this is to incorporate credit services into your e-commerce sales strategy.

Credit solutions, such as Buy Now Pay Later (BNPL) and other customer financing options, have changed the way customers engage with e-commerce companies, increasing payment flexibility and customer confidence. In this post, we'll look at how providing credit services can boost sales, reduce shopping cart abandonment, increase revenues, and improve customer retention.

The Rise of Buy-Now-Pay-Later in E-commerce

The expansion of credit in e-commerce has been fueled by changes in consumer behavior. Customers today demand a seamless, convenient shopping experience that includes various payment choices tailored to their financial condition. Traditional payment options such as credit cards and bank transfers are no longer adequate to suit the needs of current consumers.

Buy Now Pay Later (BNPL) solutions have grown in popularity, allowing buyers to purchase things immediately and pay in payments over time. This type of payment flexibility increases clients' spending power, resulting in higher cart values and more sales chances for e-commerce enterprises.

How Buy-Now-Pay-Later Can Increase Sales?

Offering credit services can boost sales by removing financial barriers for potential customers. When customers have the option to pay over time, they are more likely to buy higher-priced items or larger quantities, as they don't have to pay the full amount immediately. Credit services like BNPL have also been shown to attract customers who may have been hesitant to buy due to budget constraints. Studies have found that a significant portion of BNPL users would not have completed their purchase without the financing option, demonstrating how credit solutions can directly contribute to the growth of e-commerce by increasing conversion rates and average order values.

Reducing Shopping Cart Abandonment

Shopping cart abandonment is a major issue for e-commerce enterprises, with more than 70% of online shopping carts abandoned before checkout. While there are various reasons for cart abandonment, a lack of flexible payment choices is frequently a major contributor.

When faced with a high upfront cost, buyers may hesitate or delay their purchase, resulting in abandoned carts. Offering credit services can help to alleviate this issue by allowing clients to divide their payments into reasonable installments. With BNPL or client financing in place, businesses may offer a smoother, more flexible checkout process, resulting in fewer abandoned carts and more purchases.

Boosting Customer Retention with Buy-Now-Pay-Later

Customer retention is critical to long-term e-commerce business, and providing credit services can be an effective method for keeping customers coming back. When customers are given various financing choices, they are more likely to enjoy their shopping experience and return to your store for future purchases. Businesses that provide payment flexibility foster trust and a more personalized, customer-centric shopping experience.

Furthermore, loyalty programs can be combined with financial services to increase customer retention. Businesses, for example, could give awards or discounts to clients who make frequent purchases using BNPL or financing. This type of incentive-based strategy not only promotes client loyalty, but it also increases overall sales and profitability.

Enhancing Conversion Rates with Flexible Payment Options

Providing flexible payment choices directly affects conversion rates. When clients realize they have numerous payment options for their products, they are more likely to complete the deal. Offering credit services such as BNPL or split payments removes the financial friction that is commonly connected with major purchases, making it easier for customers to commit to the sale.

Statistics show that firms offering Buy Now Pay Later on their online stores see an average 20% to 30% increase in conversion rates. The psychological allure of being able to "buy now" and "pay later" is strong because it removes the immediate financial stress for customers, making them feel more confident in completing their purchase.

Boosting Profits with Credit

Businesses that offer credit solutions can have a direct impact on their bottom line. Offering credit not only helps attract new clients and enhance sales but also contributes to greater average order values. When customers can pay over time, they are more likely to add additional items to their cart or choose higher-priced products since they know they will not have to pay the full price upfront.

This leads to better revenue optimization for e-commerce enterprises, as they can maximize profits from each transaction. Furthermore, credit services frequently include fees or interest, which provides another possible revenue source for the company. For example, providing financing alternatives at a low or zero interest rate for a brief time can encourage additional purchases. At the same time, businesses continue to gain from transaction fees associated with the service.

Credit Solutions for E-commerce: What to Consider

While offering credit services can transform your e-commerce sales strategy, it’s important to consider a few factors when integrating these solutions into your business model:

Choose the Right Credit Partner: 

Third-party credit service providers include PayPal Credit, Klarna, Afterpay, and Affirm. Each supplier has different features, terms, and conditions, so it's critical to select the one that best fits your business goals and consumer needs.

Ensure Secure Transactions: 

To protect consumer data and prevent fraud, credit services must be implemented via secure payment channels. Make sure your e-commerce platform has strong security safeguards in place to deliver a secure and trustworthy shopping experience.

Educate Your clients: 

Make sure clients understand the benefits of your credit services. Many shoppers may be ignorant of the consumer credit choices accessible to them, so it's critical to emphasize payment flexibility and potential savings at the checkout.

Monitor Customer Behavior: 

Keep track of how your clients are using the credit services you provide. Metrics such as usage rates, order values, and customer feedback can help you fine-tune your credit solutions and guarantee they achieve the required results.

Conclusion

Offering buy now pay later as part of your e-commerce sales strategy can be transformative for businesses aiming to boost sales, reduce shopping cart abandonment, and improve customer retention. By offering flexible payment options like as Buy Now Pay Later (BNPL) and consumer financing, you may improve the checkout experience, encourage bigger order values, and increase profitability.

In today's competitive e-commerce environment, meeting client expectations for payment flexibility is critical. Implementing the appropriate credit solutions will not only set you apart from the competition but will also pave the road for long-term e-commerce growth and success. As more consumers seek convenient and secure methods to shop, businesses that offer consumer credit choices will be better positioned to optimize revenue and improve their overall conversion.

[la-principessa-nuova]

BNPL is pronounced beanpole