⚖️ North Dakota Law Regulates "Alternative Financing" as a "Loan" | Hudson Cook
North Dakota's House Bill 1127 has expanded the definition of "loan" under the state's Money Brokers Act to potentially include alternative financing products like revenue-based financing and merchant cash advances. The new definition describes a loan as any contract where money is delivered with an agreement to return an equivalent sum later, plus gives the state's Department of Financial Institutions broad authority to designate any financing product as a loan through regulatory orders.
This seemingly minor amendment could have major consequences for alternative lenders, subjecting them to North Dakota's 36% annual rate cap and licensing requirements that many business financing products cannot accommodate. The broad statutory language means even without regulatory action, North Dakota courts could interpret revenue-based financing and factoring as loans under the revised law, potentially exposing providers to lawsuits from businesses if their effective rates exceed the cap. The change takes effect August 1, 2025, giving alternative lenders time to assess whether North Dakota remains a viable market for their products.
📊 Credit Card Installments Have Reshaped Impulse Buying | PYMNTS
A recent study shows how credit card installment plans are transforming how consumers handle large unplanned purchases, with over one-third of shoppers spending at least $250 on emergency or impulse buys in recent periods. These expenses—ranging from car repairs (median $574) to home maintenance (median $2,112)—typically exceed available cash, driving consumers to rely on credit for about half of such transactions. Credit cards dominate this space, used by 33-35% of consumers for these purchases.
The key shift is toward structured installment payments rather than traditional revolving credit. Among credit card users, 30% of those making impulse purchases chose installment plans over paying in full, with this preference skewing heavily toward younger consumers—45% of Gen Z used installments for impulse buys and 52% for emergencies. The appeal lies in predictable payment schedules and approval certainty, as 40% of credit card users cited guaranteed approval as a key factor. This trend suggests growing demand for flexible credit solutions that provide clear payoff timelines, particularly among younger demographics who are driving increased impulse spending.
🎧 How Fintech Innovation Can Empower Financial Wellness | FinTech Futures
This episode of "What the FinTech?" features Kristen Castell, Managing Director of the Centre for Accelerating Financial Equity (CAFE), discussing how the financial services industry can better support customer financial health amid ongoing economic uncertainty. The conversation explores how emerging technologies and fintech innovations are enabling companies to improve their customers' financial wellness, moving beyond traditional banking services to address broader financial stability needs.
Castell provides insights into CAFE's work in this space, including a detailed look at their fintech accelerator programme that supports startups focused on financial wellness solutions. The discussion highlights how these innovations are particularly crucial during challenging macroeconomic conditions, when consumers need more sophisticated tools and support systems to navigate financial stress and build long-term financial resilience.
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