Central Bank officials are moving to tighten the use of buy-now-pay-later (BNPL) arrangements offered by some banks, aiming to close a gap that allowed payment services to masquerade as loans. The move was detailed by Izvestia after speaking with the organizer’s press service.
Reports indicate that a number of Russian banks have pitched BNPL options as a convenient alternative to traditional installments or formal loans. These services enable shoppers to split payments for purchases without signing a loan agreement. Yet, organizers’ representatives told Izvestia that while such schemes resemble credit, the borrower’s protections are unclear. In practical terms, customers may not be aware of key contract terms, including the true cost of the service, the total amount of overpayments, and the penalties that accrue if payments are delayed.
The Central Bank’s press office communicated to Izvestia that new rules would require clearer disclosure of loan terms, cap late fees, introduce a reasonable waiting period before enforcement, and formalize remittance practices. The plan includes pushing data to credit history bureaus to improve risk assessment and consumer visibility.
Industry experts interviewed by Izvestia stress that regulatory clarity is essential to safeguard Russians’ financial rights. They argue that consumers should be able to compare BNPL terms with conventional credit products, understand the obligations involved, and access reliable information before committing to a payment plan. The consensus among analysts is that new rules could help prevent unexpected costs and ensure that BNPL usage aligns with existing consumer credit protections.
In the broader context, the move reflects ongoing efforts by regulators to modernize payment services while strengthening consumer safeguards in a rapidly evolving financial landscape. Observers note that as digital payments become more prevalent, clear rules around disclosure, fee structures, and credit reporting will be critical to maintain trust in the payments ecosystem and protect individuals from opaque or misleading terms. The regulatory focus, according to the sources cited, is to balance innovation with a solid framework that keeps consumer interests at the forefront.