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Thndr Claps » U.S. Claps » Financial Services 💸 » Buy now, pay later stocks falling 📉

Buy now, pay later stocks falling 📉

by Omar El Shorafa
September 15, 2022
CFPB, Claps

The Clap
Shares of “buy now, pay later” companies fell after the US Consumer Financial Protection Bureau (CFPB) issued a report revealing its intention to impose more supervision on these companies.

The Deets
PayPal’s stock fell 1.5% while Block and Affirm Holdings’ stock also declined by 2% and 5.1%, respectively.

Consumer Protection
The CFPB intends to regulate the companies to make them follow the same standards as credit companies.

Buy Now, Pay Later
This model allows consumers to make short-term installments, usually without interest on purchases.

The model has come under pressure in recent months as a result of a decrease in consumer spending and increased regulatory pressures.

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