ALBANY, N.Y. — The New York State Department of Financial Services has proposed new regulations that would establish a licensing and supervisory framework for buy now, pay later (BNPL) providers operating in the state, opening a 60-day public comment period that runs through Sept. 14.
The proposed rule was posted Wednesday on the department’s regulatory activity page. In a statement posted on X, the department said the regulations are intended to establish a formal licensing and oversight framework for BNPL providers in New York.
According to Bloomberg Law, the proposal would require BNPL lenders to:
- Obtain a state license to operate.
- Provide consumers with monthly billing statements.
- Cap late fees at $8.
- Establish formal consumer dispute resolution processes.
The proposal is part of the department’s implementation of legislation approved by the New York Legislature as part of the state’s 2025 budget, according to the Financial Technology Association (FTA).
BNPL Industry Welcomes Proposal
“We appreciate the work the Department of Financial Services has put into crafting these proposed regulations and look forward to submitting our comments,” FTA President and CEO Penny Lee said in a statement. “As the buy now, pay later industry continues to grow, we welcome appropriate regulation that reflects the consumer protections and standards already in place at the leading firms.”
The Department of Financial Services said it will accept public comments on the proposed regulations through Sept. 14 before determining whether to adopt a final rule.
