Letter calls for regulatory approach that recognizes responsible BNPL products and follows formal public and transparent rulemaking process

Salem, OR (July 20, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted a comment letter to the Oregon Department of Consumer and Business Services (DCBS), Division of Financial Regulation, urging the agency to reconsider its Proposed Bulletin Regarding Oregon Consumer Finance and Payday Licensing Requirements for Buy-Now-Pay-Later (BNPL) products. AFC encouraged the Division to adopt a more tailored regulatory approach that reflects the unique structure and consumer protections of responsible BNPL products.

“Responsible BNPL providers offer important financial options  to safely and affordably, meet the evolving financial needs of consumers said Phil Goldfeder, CEO of the American Fintech Council. “Oregonians deserve access to those essential tools. Pay-over-time options provide a critical alternative to traditional forms of credit by offering clear terms, predictable repayment schedules, and greater financial flexibility. Oregon policymakers have an opportunity to establish a balanced regulatory approach that allows consumers to continue benefitting from these important financial products.”

AFC urges the Division to reconsider applying Oregon's payday lending and consumer finance licensing framework to responsible BNPL products. AFC argues that applying regulations designed for high-cost payday lending could increase regulatory uncertainty, and fail to reflect the products' distinct structure. AFC also calls on the Division to clarify that merchant compensation arrangements are distinct from consumer finance charges, as these fees compensate BNPL providers for payment-related services rather than the extension of credit to consumers.

“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. “Oregon’s approach to BNPL regulation should be guided by a thorough review of existing statutes, recognition of the inherently unique structure of BNPL, and meaningful engagement with stakeholders before new compliance obligations are established.”

AFC also recommends that the Division reconsider its interpretation of the purchase money loan exclusion and pursue any significant changes to BNPL regulation through a formal rulemaking process. AFC argues that responsible BNPL products are designed to finance specific retail purchases at the point of sale and should be evaluated based on their transaction-specific structure rather than whether they are secured by collateral. Additionally, AFC cautions that the Proposed Bulletin represents a substantial expansion of existing regulatory expectations and recommends that the Division use a transparent, stakeholder-driven rulemaking process to ensure any future framework appropriately balances consumer protection, regulatory clarity, and responsible innovation.

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of over 150 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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