CFPB publishes new findings on financial profiles of Buy Now Pay Later borrowers
March 07, 2023
On March 2, 2023, the Consumer Financial Protection Bureau (CFPB) published a new report analyzing the financial profiles of Buy Now, Pay Later (BNPL) borrowers. While the report finds that many BNPL borrowers who the CFPB observed used the product without any noticeable indications of financial stress, BNPL borrowers were, on average, much more likely to be highly indebted, revolve on their credit cards, have delinquencies in traditional credit products, and use high-interest financial services such as payday, pawn, and overdraft compared to non-BNPL borrowers. In addition, the report finds that BNPL borrowers had higher credit card utilization rates and lower credit scores. The report follows previous CFPB research on the BNPL market.