Group 1 - Consumers accrued a record $10 billion in purchases using buy now, pay later (BNPL) plans in November, with $1 billion spent on Cyber Monday alone [1] - Approximately half of Americans have utilized BNPL services for various purchases, indicating widespread adoption [1] - The total BNPL debt is difficult to quantify as lenders are not required to report to credit bureaus, leading to a largely invisible debt landscape [2] Group 2 - In 2023, Americans spent over $116 billion through BNPL plans, a significant increase from $2 billion in 2019, highlighting rapid growth in the sector [3] - BNPL companies generate revenue primarily through transaction fees charged to merchants, with Klarna achieving a valuation of $15 billion upon its NYSE debut and reporting $903 million in revenue, a 26% increase year-over-year [3] - Borrowers can access credit lines up to $20,000 without a credit report, allowing them to significantly increase their purchasing power by using multiple BNPL services simultaneously [4] Group 3 - BNPL lenders are not subject to the same regulations as traditional credit products, such as the CARD Act and the Truth in Lending Act, which could lead to consumer risks [5] - Although typical BNPL plans last four to six weeks, they can extend much longer, and regulatory scrutiny has been limited, with past investigations failing to impose stricter regulations [5] - FICO plans to include BNPL debts in credit histories, which may impact consumer behavior regarding installment plans, although the method of data collection remains unclear [5]