CFPB Calls for Further Research Into BNPL’s Impact on Financial Health

BNPL, buy now pay later

The Consumer Financial Protection Bureau (CFPB) said there is a need for more research into buy now, pay later (BNPL) after finding that BNPL borrowers held higher balances on other credit lines.

“The importance of BNPL in the credit profiles of BNPL borrowers underlines the need for further research to understand how this growing financial product causally impacts borrowers’ financial health,” the CFPB wrote in a report released Monday (Jan. 13).

The regulator’s report found that more than one-fifth of consumers with a credit report used BNPL loans in 2022, according to a Monday press release.

It also found that more than 60% of BNPL users had simultaneous BNPL loans, nearly two-thirds of BNPL loans went to consumers with credit scores that were subprime or lower, and BNPL borrowers had higher balances on other credit lines such as personal loans, retail loans, student loans, credit cards and subprime alternative financial services lenders, per the release.

“Before first-time BNPL use, consumers’ average credit card utilization rates increased, suggesting that less available credit card liquidity may encourage consumers to use BNPL,” the release said.

CFPB Director Rohit Chopra said in March that the agency planned to look closer at BNPL providers because, he said, some are using personal data to “induce more purchasing or borrowing” on the part of consumers.

In May, the CFPB ruled that BNPL vendors are credit card providers and must provide some key legal protections and rights delivered by conventional credit cards, including the consumer’s right to dispute charges and demand a refund from the lender.

“Buy now, pay later is now a major part of the consumer credit market, as these loans provide a meaningful alternative to other options for consumers,” Chopra said at the time. “However, the CFPB wants to ensure that these new competitive offerings are not gaining an advantage by sidestepping the longstanding rights and responsibilities enshrined under the law.”

BNPL has emerged as a transformative that can help turn around the credit situation of consumers who do not have a good understanding of how credit scores work or how they can be improved to qualify for credit products, according to the PYMNTS Intelligence and Sezzle collaboration, “How Credit Insecurity is Changing U.S. Consumers’ Borrowing Habits.”

Nice Spread: AI Is Coming for the Guac This Super Bowl Sunday

Super Bowl guacamole dip

Every single American holiday is about the spread. Your mom’s Thanksgiving dinner sets the standard, but don’t discount the Super Bowl.

This clash of pigskin-wielding titans is our first exercise in excess each calendar year. And artificial intelligence (AI) has decided it wants a share of Super Bowl LIX.

For skeptics, part of the problem with AI is that it may only too readily mimic humanity’s less-than-flattering qualities. Gorging on chicken wings at the Super Bowl party while betting on a game’s outcome checks that box at least twice. But the deadly sins of gluttony and avarice don’t seem to matter much to AI.

It’s showing up everywhere. AI’s involved in all things Super Bowl fandom — from gameplay predictions to ad generation to a “Guacline” connecting callers to the retired Patriots fixture and affable dufus Rob Gronkowski. One suspects that had the stars aligned a bit differently, Taylor Swift might’ve dated a different tight end.

At any rate, AI is starting to vibe like that guy who doesn’t even like football but brings seven-layer dip to the party and eats six layers himself.

Leave some for the rest of us.

Guac-a-What? Gronk, Avocados and Deepfake Advertising

Like it or not, your Super Bowl snacks are getting an AI upgrade. Avocados From Mexico (AFM) recently unveiled a marketing campaign featuring an AI-generated version of Gronk, a four-time Super Bowl winner. Presumably, the deepfake emerged under contract, but who knew the cliché ingredient par excellence in every millennial diet needed an advocate?

The nonprofit marketing group recently launched the “Guacline,” an interactive platform where fans can call a digital avatar of Gronk for what feels like a one-on-one conversation. With AI-generated visuals and audio, this isn’t just another celebrity endorsement — it’s a calculated bid to merge novelty with nostalgia. AFM’s Guacline is scripted to steer football fans toward social revolution. Just kidding. It helps surface whatever a personalized guacamole recipe is.

AFM President and CEO Alvaro Luque has spread the very accurate rumor that the Super Bowl is the marquee event for the avocado industry. Throughout the playoffs — roughly the month leading up to the Super Bowl — Americans will consume 250 million pounds of avocados — 95% of which come from Mexico.

It’s no exaggeration to say guacamole has become a Super Bowl staple, as essential as the halftime show or questionable officiating. It wasn’t always this way.

The Evolution of Avocado Obsession

Back in 1985, domestic avocado consumption totaled 436 million pounds. By 2023, that number had exploded to over 3 billion pounds, with per capita consumption jumping from 2 pounds in 2001 to 9 pounds in 2022. But the humble source of guacamole still needs AI to reach even deeper into the American diet.

Perhaps it’s that, although avocados earned their “superfood” reputation for their healthy fats and fiber, they gained meme status after Tim Gurner’s infamous claim that millennials couldn’t afford homes because they spent too much on avocado toast.

While many embrace avocados as a health-conscious snack, a recent survey highlights a significant hurdle: cost. Nearly 78% of consumers said avocados are frequently too expensive, making guacamole a splurge item for some.

So, flaunt your guac this Super Bowl Sunday. It’s not just a dip. It’s a tech-enable delicacy. After all, price concerns take a back seat to the tradition of a perfectly crafted spread.

Betting on Bytes: The AI Gamble

While Gronk AI pitches guac, AI has additional designs on Super Bowl Sunday: sports betting. Self-learning algorithms crunch data to predict point spreads, over/under bets, and money line picks. For fans, these tools offer a cheat code to the chaos of Super Bowl Sunday. That does feel unfair but admit it: the last time you did calculus was never.

All the same, these algorithms raise questions. When your app boasts 90% accuracy, do you really trust it — or are you just hoping the machines favor your team?

The odds are ever in your favor if they are “personalized.”

AI on the Field and in the Ads

AI isn’t just shaping how fans bet. It’s also influencing how they experience the game. NFL teams now use predictive analytics for play-calling and player performance. It’s the Bill Belichick of the system on a chip. NBC’s Peacock platform promises to tailor ads by user — even though this institution, the Super Bowl commercial, may represent the last shared experience in American media.

The move creates a brave new world wherein even your tortilla chip brand feels hyper-targeted. Surely, that targeting is that last pass at your local Super Bowl spread landed on your plate.

A Slice of Tradition

Despite AI’s growing presence, much remains sacred. Guacamole and the Super Bowl have become inextricably linked. They offer a rare blend of health trends, cultural memes, and culinary joy. Whether you’re rooting for your team or placing your bets, the guac will flow and the chips will be gone long before halftime.

Can we get AI that solves the chip-to-dip ratio?