On our previous episode, we spoke about the Buy Now Pay Later industry and the players that rode the pandemic to all time highs! But what we didn’t talk about was the chaos that ensued post covid!..Affirm's stock price dropped over 90% since November 2021, AfterPay fell more than 80%, and Klarna saw a decline of over 70%.

So what's behind this turbulence? Rising interest rates, inflation concerns, and worries about consumer debt have left investors scratching their heads. But don't worry, we're here to make sense of it all!

In this episode, we'll explore the challenges facing the BNPL industry and how it's adapting to the economic storm. We'll also discuss the importance of responsible spending and share some tips to ensure you're making informed decisions when using BNPL services.

Regulatory Scrutiny. BNPL is a relatively new product, and there is no clear regulatory framework for it. This has led to concerns about consumer protection and financial stability. Some BNPL companies have been fined for violating regulations. For example, in 2022, the Financial Conduct Authority (FCA) in the United Kingdom fined Klarna £39 million for failing to adequately assess the affordability of its products to consumers. The FCA also fined Clearpay £20 million for similar reasons.

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