Rapidly Growing 'Buy Now, Pay Later' (BNPL) Financing: Market Developments and Policy Issues [Updated November 1, 2021]   [open pdf - 718KB]

From the Document: "'Buy now, pay later' (BNPL) is a form of point-of-sales financing. With BNPL financing, a consumer can purchase an item now and pay for it later on an agreed upon payment schedule. BNPL financing is often offered online and has generally been developed by technology-focused, nonbank financial companies, often characterized as 'fintech' companies [hyperlink]. BNPL financing has been growing rapidly in recent years. Reports [hyperlink] suggest that BNPL financing may have tripled in 2020 compared to the prior year. A consulting firm estimates [hyperlink] that BNPL balances grew by 24% from 2016 to 2019 and are expected to grow around 20% annually for the next three years. This Insight discusses the BNPL financing market and potential policy issues in this market. The House Financial Services committee is holding a hearing [hyperlink] on this and other related topics on November 2, 2021."