Overview
In recent years, many retailers have turned to programs known as "buy now, pay later" —such as Afterpay, Klarna, and Affirm—to offer customers more flexible payment options. These retail installment sales contracts, or RISCs, became especially popular during the COVID pandemic, as they allow customers to take their purchases home before paying in full, and then pay the balance over the course of several smaller—often four—payments. RISCs also appeal to retailers because they offer consumers more flexible payment options while also enabling the retailers to receive full payment upfront from service providers.
As these services enter the mainstream, however, they face increasing scrutiny from state and federal regulators alike. (For our past discussion of related enforcement efforts, see here, here, and here.)
Tomorrow, Tuesday, November 02, 2021, at 10:00 a.m. ET, the House Financial Services Committee hearing takes place on Buy Now and Pay Later platforms and other emerging fintech cash flow products. The hearing will be publicly accessible here. The prepared statements of the witnesses are also available (by clicking on the witnesses' name).
