Buy Now Pay Later has proven to be a popular way for consumers to purchase in Australia. A survey conducted in 2024 indicates that 43% of Australians had used BNPL to purchase goods at least once every 6 months. 

Millennials and Gen Z have been drawn to these services as an alternative to traditional credit cards, to date however the regulations surrounding the facilities have not been the same as for other forms of similar credit.

From June 10th, BNPL providers in Australia will be subject to the National Credit Act, meaning they will need to hold an ACL (Australian Credit Licence) and become members of AFCA (Australian Financial Complaints Authority). The changes aim to provide customers with enhanced protections and access to independent dispute resolutions through AFCA

Providers will now be subject to responsible lending regulations and will need to consider financial hardship requests and credit reporting.

It is hoped that the changes will bring about increased protection for consumers in this growing market by ensuring that BNPL providers adhere to responsible lending practices and are accountable for their actions. When they don’t, consumers will have access to AFCA for independent dispute resolution.