Consumer Finance Tidbits: Issue 26-18

Research evidence excerpt

Consumer Finance Tidbits: Issue 26-18

scheduled for 7/20 (Monday). Lawrence Aydlett

Research Analyst

Visa expands stablecoin capabilities BofASlawrence.aydlettjr@bofa.com

Visa announced the Visa Stablecoin Platform (VSP), a new infrastructure offering that

enables financial institutions and fintechs to mint, manage, transfer and redeem

stablecoins through a Visa-managed environment, while integrating stablecoin

functionality into existing payment and settlement workflows. Our take: We view the

announcement positively as it reinforces Visa’s strategy of participating in, rather than

being disrupted by, emerging payment rails. While the near-term financial impact is likely

limited, VSP further expands Visa’s role in digital payments, treasury, and settlement

infrastructure and highlights management’s continued focus on stablecoins as a long-term

growth opportunity.

BNPL regulatory update: UK, NY

In the UK, as of July 15, Buy Now, Pay Later companies are subject to regulation from

the Financial Conduct Authority in the UK and consumers will be given protections

consistent with other forms of credit. This includes requiring BNPL providers to carry

out affordability checks before offering credit. Consumers who want a refund for faulty

goods will also enjoy the same protections as with credit cards for purchases above

£100. Separately, New York’s Dept of Financial Services has proposed that BNPL firms

operating in NY will be required to send monthly billing statement (including disclosing

APRs), face an $8 cap on late fees and comply with NY’s interest rate cap (16% civil

usury limit). Our take: Regulatory interest in BNPL continues to increase as usage

increases. While many BNPL players (e.g. Affirm) don’t charge late fees or already comply