BNPL
“ Not every BNPL provider offers Clearpay ’ s gold standard of customer protection , and that ’ s why proportionate regulation is needed to minimise consumer risk ,” adds Bayer .
“ There ’ s also some misuse of the term ‘ Buy Now , Pay Later ’, with some providers offering interest-bearing products and labelling them as BNPL . One of the standout points about BNPL should be that it is a no-interest offering .
“ It ’ s critical that industry and government work together to ensure that a gold standard of customer protection is delivered . Clearpay has always advocated that the best regulation will both safeguard consumers and facilitate innovation .”
Echoing this , Skrynova emphasises the need for regulators to approach this issue in such a way that consumer protection is not achieved at the expense of creativity . Predicting what ’ s to come in 2024 , she continues : “ The UK and Singapore will continue what Australia started last year by acting on their consultations and regulating BNPL providers . The goal of this is to protect the consumers most likely to be vulnerable if they misuse BNPL .
“ Increased regulation will be good for the market . It ’ s a sign of market maturity ; making sure consumers are sufficiently protected builds trust and ensures everyone can benefit .” fintechmagazine . com 91