Buy now, pay later firms fall after doubts over Trump's credit card rate cap plan

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12/01/2026 15:29

Updates

** Shares of buy now, pay later firms fall after initial gains following U.S. President Donald Trump's calls for one-year cap on credit card interest rates at 10%, starting January 20

** Some analysts say imposing a cap on interest rates will require legislation and can exceed the president's authority, casting doubts on whether the policy will materialize

** Investors say the proposal can push borrowers away from traditional credit cards and toward alternative lenders, including BNPL providers

** Klarna KLAR.N falls 4.2%, Affirm AFRM.O sheds 6.9%

** Sezzle SEZL.O slips 2.2%

 (Reporting by Pritam Biswas in Bengaluru)

 ((Pritam.Biswas@thomsonreuters.com))