The Green Sheet Online Edition
June 23, 2025 • 25:06:02
News Briefs
The ugly side of BNPL <- click to read full story
A new report from the Kansas City Fed revealed troubling trends in the buy now, pay later (BNPL) market. While BNPL services are popular among younger consumers, they're especially used by those already financially overextended. Many BNPL users show multiple indicators of financial constraint—such as difficulty covering expenses or having medical debt. Over 15 percent of users with late payments have nine or more indicators of distress.
In addition, companies like Affirm and Klarna posted large losses, raising questions about long-term sustainability, and BNPL's limited protections leave consumers unable to easily dispute charges or return items. Though some use BNPL wisely to avoid high-interest credit, the report suggests many overspend and face default risk. Without reforms, BNPL may deepen vulnerability rather than provide relief.
Resilience required amid global tariff turbulence <- click to read full story
Global tariff instability is placing unprecedented strain on financial systems. Trading volumes have more than doubled, and capital markets are hitting infrastructure limits. Solace's Himanshu Gupta stressed the need for real-time, event-driven technology to withstand market volatility. Invoice rejections surged 273 percent in the first quarter of 2025, driven by delayed payments and compliance chaos.
Basware's Jason Kurtz attributed this spike to companies hoarding cash amid uncertainty. Meanwhile, fragmented global regulations raised transaction costs and operational risk for cross-border payments. Dima Kats of Clear Junction warned of lasting structural threats. However, as uncertainty grows, automation offers relief—streamlining invoice processing and fraud detection while improving accuracy. Industry leaders agreed that only agile, resilient systems will allow firms to position for recovery.
Is Credit Card Competition Act a genius idea? <- click to read full story
The Credit Card Competition Act (CCCA) would require large banks to let merchants choose between two networks for processing credit card payments—only one of which can be Visa or Mastercard. Supporters said the bill could lower costs for merchants and consumers. The bill is backed by major unions and merchant groups who argue credit card fees worsen affordability issues.
Opponents, including airlines and plane manufacturers, warned that rewards programs could disappear, harming consumers. The bill is tied to the controversial GENIUS Act and awaits a full Senate vote. The Merchant Payments Coalition supports it, while critics claim it favors big businesses. The proposal reflects broader tensions between reducing transaction fees and preserving benefits tied to major card networks.
Mastercard, PayPal partner, PayPal goes physical <- click to read full story
PayPal and Mastercard are expanding their partnership with a focus on flexibility and user control. PayPal will launch a new Mastercard credit card issued by Synchrony Bank for in-store and online purchases. It features limited-time promotional financing and cashback benefits. Meanwhile, Mastercard's One Credential system will unify multiple payment options—credit, debit, loyalty and installment—into a single digital identity. Users can manage preferences through their banking app, allowing dynamic funding at checkout.
This system enhances security while streamlining transactions. PayPal executives said the offerings meet growing consumer demand for choice and on-the-go access. Mastercard emphasized that the integration helps users build stronger financial habits and creditworthiness.
Illinois legislature votes to delay controversial interchange law <- click to read full story
Illinois legislators delayed implementation of the Interchange Fee Prohibition Act (IFPA) to July 1, 2026. The law would exempt taxes and tips from interchange fees on card payments. Critics—including banks, credit unions and federal regulators—argued it benefits large retailers like Walmart and Amazon while increasing costs for small businesses. Legal challenges are ongoing.
Supporters, including Senator Richard Durbin, D-Ill., claimed the bill would reduce consumer costs. A recent study showed the top 10 retailers would capture over 21 percent of the law's savings. Small businesses may face added compliance burdens, including the need to replace POS systems. Similar legislation is under consideration in five other states. The delay allows time for legal review and further debate about the law's implications. 
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