Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
- Oregon is proposing new consumer finance and payday lending licensing requirements to Buy Now, Pay Later lenders operating in the state of Oregon.
- The American Fintech Council and Klarna oppose the proposed licensing requirements in Oregon.
- Illinois, New York, and California already have rules and legislation targeting BNPL providers and BNPL practices in their states.
Oregon just reminded Buy Now, Pay Later lenders that they need to follow state payday lending and consumer finance rules for some installment-based loans made in The Beaver State.
Under the proposal, BNPL lenders would need a payday lending license for qualifying loans of $50,000 or less that are due within 60 days.
Fintechs Push Back on Oregon’s BNPL Proposal
The American Fintech Council objected to the plan, urging Oregon regulators to adjust the proposal framework in a comment letter to the Oregon Department of Consumer and Business Services’ Division of Financial Regulation.
The trade group argues rules designed for high-cost payday loans don’t account for how BNPL products work.
“As Oregon considers the best way to regulate BNPL products, we urge policymakers to consider a regulatory approach that accurately reflects the realities of today’s financial landscape, as well as the features of BNPL products,” said Ian P. Moloney, Chief Policy Officer of the American Fintech Council.
“Outdated assumptions lock consumers into incumbent banks, limit choice, while not actually offering real consumer protection.” — Klarna spokesperson
Popular BNPL provider Klarna also opposes the plan with a spokesperson recently telling Payments Dive: “We support smart BNPL regulation, but Oregon’s draft bulletin misses the mark.”
“Outdated assumptions lock consumers into incumbent banks, limit choice, while not actually offering real consumer protection. We’re committed to working with regulators on a better path forward.”
Other States Targeting BNPL Products
Oregon is not the first state to push for BNPL regulation as a patchwork of state laws has emerged in recent years. For example, Illinois, New York, and California recently passed rules governing BNPL providers and practices.
Illinois Governor J.B. Pritzker signed new BNPL legislation on June 25 requiring providers to be licensed or registered with state regulators, capping interest at 36%, and giving regulators authority over some fees. The law also adds consumer protections for disputes and repayment ability.
Earlier this year, New York proposed sweeping BNPL regulations that would prohibit convenience charges, limit late fees and other penalties, and protect consumer data from misuse. The regulations have not yet taken effect.
In California, many BNPL plans are considered loans, and providers offering them must be licensed under state finance law.
Licensing requirements govern how BNPL loans can be marketed and made, how much interest a license holder may charge, and how debts may be collected.
BNPL Use Continues to Grow
U.S. BNPL usage jumped 60% between 2021 and 2025, and the market is primarily dominated by Affirm, Afterpay (owned by Block, Inc.), Klarna, PayPal, Sezzle, and Zip.
Six Companies Behind $156.7B in BNPL Credit
Source: Federal Reserve
BNPL providers originated close to $160 billion in consumer credit products in 2025, with “pay in 4” plans representing about half of these products.
Capital One Shopping Research found that 16% of American consumers used BNPL in 2025 and that 47% of consumers have missed at least one BNPL payment, though it does not assign that figure specifically to 2025.
