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Credit Alone? What New Yorkers’ Use of Fintech Tools Means for State Consumer Protections
Hilary Wilson
Summary:
The rapid expansion of financial technology tools like Buy Now, Pay Later (BNPL) and Earned Wage Access (EWA) has redefined how New Yorkers borrow and manage money—often with unintended consequences. While fintech companies promote these products as expanding equitable access to credit and banking services, many rely on high fees, hidden costs, and legal loopholes that can drive users deeper into debt.
Using data from CSS’s 2024 Annual Survey of Housing and Economic Security, this policy brief finds that BNPL and EWA use is highest among younger, Black, and Latino New Yorkers, and that frequent users already carry higher levels of debt. New York has begun implementing new protections for BNPL borrowers, but gaps remain—particularly for EWA users facing effective interest rates of up to 750%. The brief calls for stronger state regulation to ensure fintech advances financial inclusion without deepening inequality.
Issues: Economic Mobility & Security
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