The Australian government will impose stricter regulations on the buy now, pay later (BNPL) industry amid concerns about high risks to vulnerable groups in society.
In his speech to the Responsible Lending and Borrowing Summit on May 22, Financial Services Minister Stephen Jones announced that the federal government would change the law to regulate BNPL like a credit product.
Under the proposed changes, BNPL providers will need to hold a credit licence and comply with Responsible Lending Obligations.
They will also be required to meet minimum standards set for the industry and hardship requirements and abide by marketing restrictions.
“Our plan will bring BNPL into line with other regulated credit providers, simplifying our regulatory system and addressing concerns about competitive neutrality,” Jones said….