The head of the Financial Technology Association defended buy now, pay later (BNPL) financing deals at a congressional hearing last week against claims by critics that they encourage consumers to spend more than they can afford, damaging their credit score in the process.
In testimony presented to the House Financial Services Committee’s Task Force on Financial Technology, Financial Technology Association CEO Penny Lee argued that BNPL services offer consumers a better deal than credit cards that charge high-interest rates that can take years to pay off. She said that technological advances like BNPL also lower borrowers’ costs and increase choice for both consumers and businesses.
