8/31/2023 0 Comments Order now pay later websitesHere is a look at some of the key findings of CR’s evaluation, plus steps consumers can take to protect themselves.Īlthough BNPL loans often promote themselves as having no fees or interest, CR’s analysis (and an earlier CR review) found that’s not always the case. Finally, they contacted each of the eight BNPL companies for clarifications about their policies and practices. “Our goal is to help consumers know whether using these apps leads to positive outcomes, and to encourage industry and regulators to make sure that they do,” Hand says.ĬR researchers examined publicly available documents found on BNPL company websites and mobile apps under headings such as “terms of service,” “terms and conditions,” “privacy policy,” “privacy disclosures,” and “end user license agreement.” They also conducted consumer panels, surveys, a user interface review, and technical tests such as network traffic analysis. In this analysis of eight BNPL apps, we applied three of the principals-safety, privacy, and transparency. “We hope this analysis helps encourage that change in the industry, plus others.”ĬR recently developed the Fair Digital Finance Framework, a set of seven principles for evaluating a range of digital finance products and services, including BNPL. “All companies should make it easy to find information about terms and fees and to control privacy settings,” say Delicia Hand, director of financial fairness at Consumer Reports, who led the analysis. PayPal was also the only company to provide easy-to-understand information that helped users review and correct their own data. It also edged out the competition in several other areas, including having meaningful privacy information and transparent safety practices. Importantly, PayPal got high marks in fraud protection and also did well in offering good security practices, the two areas CR testers deemed most important and gave the most weight to. PayPal earned a top score in five of the twelve criteria that CR’s testers assessed, while no other app earned a top score in more than one. Perpay and Zilch pulled up the rear with scores of 69 and 70, respectively. In terms of overall ratings for the combined areas of safety, privacy, and transparency, PayPal scored the highest, at 89, followed by Klarna and Afterpay, both at 77.
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