Friday is proving to be disastrous for the Openpay Group Ltd (ASX: OPY) share price, and the buy now, pay later (BNPL) sector in general.
The industry's pain comes amid the launch of an inquiry into BNPL companies by the United States' Consumer Financial Protection Bureau (CFPB).
At the time of writing, the Openpay share price is 84.5 cents, 6.11% lower than its previous close.
For context, the broader market is currently in the green. The S&P/ASX 200 Index (ASX: XJO) is up 0.56% while the All Ordinaries Index (ASX: XAO) has gained 0.47%.
Let's take a look at what's going on with ASX-listed BNPL providers on Friday.
Openpay share price tumbles alongside BNPL peers'
The Openpay share price is suffering today, but at least it's not alone.
Right now, the share price of the sector's biggest participant, Afterpay Ltd (ASX: APT) is experiencing a 7% fall, while that of Zip Co Ltd (ASX: Z1P) has tumbled 5%. Sezzle Inc's (ASX: SZL) stock is also trading 6% lower.
Interestingly, the Humm Group Ltd (ASX: HUM) share price is bucking the trend, recording a 1.4% gain.
Looking internationally, the Affirm Holdings Inc (NASDAQ: AFRM) share price fell 10.5% overnight, while that of Paypal Holdings Inc (NASDAQ: PYPL) slipped 1%.
CFPB launches inquiry into BNPL services
United States' financial law implementation and enforcement body, CFPB, is concerned about the burgeoning BNPL industry's effects on the health of the financial sector and consumers' finances.
In reaction to its worries, it has launched an inquiry into the industry. The inquiry will focus on debt levels, regulatory conformity, and data collections.
It's put the call out to 5 industry giants, Afterpay, Zip, Paypal, Affirm, and Klarna, to provide information on the pros and cons of their services.
According to CFPB director Rohit Chopra, the body will use the information collected from the companies to "report to the public about industry practices and risks".
The entity is working with its international partners to conduct the inquiry. It specifies such partners exist in Australia.
Right now, the Openpay share price is 64% lower than it was at the start of 2021. It has also slipped 27% since this time last month.
