Buy now, pay later (BNPL) offerings swiftly have risen to become one of the most popular services provided by fintech companies. Consumers hungry for the ability to pay for a purchase over several installments—typically with low to no interest charged—have made fortunes for some of the fintech world’s most notable names.
Although BNPL companies have attracted heightened scrutiny from regulatory bodies, few have drawn the kind of attention that Montana-based fintech Credova Financial earned at the end of August 2022. But then, Credova isn’t like most other fintechs in that its BNPL service is geared toward the buying and selling of guns and ammunition.
“We are concerned that the ease with which buyers can acquire guns through BNPL will result in more guns and increased gun violence in our nation’s communities,” wrote a group of 18 Democratic lawmakers in a letter to the company.
The lawmakers included in their letter a slew of questions targeted at Credova’s safeguards related to background checks and the legality of firearms exchanged. “Amid more than 100 daily gun-related deaths and recurrent mass shootings nationwide, the U.S. continues to endure a devastating gun violence epidemic that we believe could be exacerbated by this concerning business practice,” the letter stated in no uncertain terms.