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.
Buy now, pay later stocks falling 📉
