New York City seeks stricter regulation of buy now, pay later services

The New York City administration, led by Mayor Zohran Mamdani, is urging state regulators to strengthen oversight of 'buy now, pay later' (BNPL) credit services. The Department of Consumer and Worker Protection (DCWP) is calling for stricter rules to address concerns that low-income residents and younger citizens are accumulating significant debt by using these services for essential expenses like rent, healthcare, and food.

Specifically, the city is requesting that regulators cover financing marketed for rent and medical care, enhance disclosure and refund protections, and grant the city parallel authority to enforce these new measures. Federal Reserve data indicates that major BNPL providers, including Klarna and Affirm, issued nearly $157 billion in credit in the U.S. during 2025.