PAYMENTS welcomed . They will help reduce financial harm to consumers and ensure that BNPL advertisements are fair , clear , and not misleading .”
However , he points out that the new regulations don ’ t go far enough when it comes to protecting consumers from fraud , as they do not require BNPL providers to implement technologies such as behavioural biometrics to reduce fraud and build digital trust . This is something Nooriala would like to see implemented in the UK , as it would be in line with regulatory moves being considered by the European Union .
The future of BNPL in a depressed economy Ultimately , the problems that have come to light of late are part of a natural maturation process for any new business or service : regulators assess the issues that arise and act accordingly – and BNPL is no exception .
But these services are also applicable to business payment services . Chris Tsai , CEO of Resolve , says that despite the downturn and tough new regulations in the pipeline , leading BNPL players are thriving . This is especially true for consumer players like Affirm , who know how to underwrite and grow in all market conditions .
“ It may be tougher for others with lesser capabilities in a recessionary environment . But for B2B BNPL players , it ’ s even more exciting as so many B2B companies are ‘ getting religious ’ about how to modernise their business payments – net terms , accounts receivable processes , and so on – for the digital age .”
B2B BNPL vs B2C BNPL regulations When it comes to regulatory requirements , Tsai says differentiating between B2B and B2C BNPL services is also important . “ While B2C BNPL is being watched very closely by regulators and investors as a brand new approach to consumer lending , B2B BNPL should more appropriately be considered the digitisation of business payments and practices that have been occurring since the beginning of commerce .”
He points out that , prior to BNPL , it wasn ’ t uncommon for B2B companies to already use net terms for extended credit . “ What we are seeing now in the B2B BNPL space are technologies that are allowing a broader swath of companies to embed these tools into their accounts receivable functions which ultimately increases their access to working capital and provides downstream workflow efficiencies .”
He adds : “ B2B BNPL is absolutely thriving as companies of all sizes learn about ways in which they can improve their business operations through embedded finance tools .”
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