/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Hamish Monk

How to prepare for DORA

Hamish Monk - Writer - Finextra
Discussion
Klarna labels CFPB BNPL rule 'baffling'
Hitesh Thakkar

Hitesh Thakkar

  CFPB is viewing BNPL as product purchase on EMI linked to Credit Card so what's wrong in it? 
Klarna labels CFPB BNPL rule 'baffling'
Conny Dorrestijn

Conny Dorrestijn

  Dear Klarna - if those 'differences are so fundamental' why not clarify this clearly in your statement?
CFPB rules that BNPL lenders should be treated as credit cards
Ketharaman Swaminathan

Ketharaman Swaminathan

  If credit card has chargeback / fraud protection at 2-3% MDR, it makes sense to extend similar benefits for BNPL at 3-6% MDR. However, if BNPL must have the same FICO score / creditworthiness bar as credit card, that'd drastically undermine its basic positioning as sorta ultra subprime loan and TAM therefrom. 
PSR steps back from capping Visa and Mastercard fees despite lack of competition
Ketharaman Swaminathan

Ketharaman Swaminathan

  All my life, I've heard that companies who don't provide value to customers, increase prices arbitrarily etc. will perish. Visa / MasterCard were not a duoply at birth. The accusations made against them have been made for as long as I can remember. It beats me how these card networks not only survived but thrived when they were not a duopoly. I can think of only only one explanation for this disconnect: Visa / MasterCard continue to provide unrivaled price-performance despite being challenged by alternative payments. To hide their incompetence, competitors are using duopoly as a smokescreen and, knowing which side of the toast is buttered, merchants are playing along (or vice versa).