End of NY Legislative Session Means No BNPL Bill This Year

New York State lawmakers ended their legislative session in June with no new state regulations for the buy now, pay later (BNPL) industry, contrary to what many anticipated. State governor Kathy Hochul began the BNPL campaign in January with proposed legislation that would require BNPL lenders to acquire a license to operate in New York.

“The main issue was there wasn’t enough time at the end of the session to work out the different versions of the bill,” said Jamus Socker, a legislative coordinator, according to Payments Dive. “We’re going to spend this summer meeting with stakeholders and meeting with senate staff so we can get the bill ready for next year.”

In March, several Democrats in the Assembly introduced a bill countering Gov. Hochul’s, presenting different ways to establish parameters and consumer protections for BNPL, such as fee limits, disclosure requirements, dispute resolution parameters, data privacy terms, and credit reporting standards.

While many BNPL providers advertise their no-fee offerings, some do charge interest fees for specific services and may also charge late fees. The BNPL programs that are most widely-marketed to consumers are the interest-free, pay-in-4 plans. These allow consumers to pay the initial payment when buying an item, followed by three more payments in a six-month timeframe.

In May, New York Democratic Senator James Sanders introduced Senate bill 9689, which was aimed at licensing BNPL providers. Phil Goldfeder, CEO of the American Fintech Council, a trade group that represents fintech companies, said that any BNPL legislation should focus on balancing responsible credit access without compromising consumer protections.

Goldfeder also stated that there is a strong chance state lawmakers will be more successful in 2025, as those who participated in this year’s efforts are eager to continue the conversation.