BNPL interpretive rule not a major headwind for Block, PayPal, says Macquarie

Macquarie notes that the Consumer Protection Bureau, or CFPB, has issued an interpretive rule that would BNPL lenders to the same standards as credit card issuers/providers and will mean that consumers of BNPL products must essentially have the same federal protections and rights as users of credit cards once the rule is effective in 60 days. The firm, which has long expected greater regulatory oversight in the form of added consumer protections, does not see this rele representing a major headwind to companies under its coverage directly exposed to BNPL, including Block (SQ) and Paypal (PYPL). The firm has Outperform ratings on both Block and Paypal.