On Wednesday, the Consumer Financial Protection Bureau (CFPB) issued new interpretive guidance on the regulation of buy now pay later (BNPL) products in the United States. Rather than offering distinct rules for BNPL products, the new guidance defines BNLP platforms as “credit card providers,” despite significant differences between the two products.

“You don’t have to look hard for major differences between BNPL and credit cards, so it’s surprising to see the CFPB treating these like they’re the same product,” said Chamber of Progress Financial Policy Director Kyle Bligen. “Unlike credit cards, which are responsible for over $1 trillion of US consumer debt, BNPL products charge little to no interest. The CFPB should work with industry to tailor their rule to the nuances of BNPL innovations, rather than applying rules written for a completely different product.”

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