Buy now, pay later providers such as Afterpay and Zip may soon have to hold credit licences and ensure their customers can afford their services under new regulations introduced by the federal government.
Users of buy now, pay later (BNPL) services may soon have to undergo credit checks under proposed law reform introduced by the federal government.
A BNPL service allows the consumer to buy a product but delay the payment, usually paying it off in instalments over a few weeks.
The proposed legislation will put in place consumer protections while maintaining the innovation and competition introduced by the sector, Assistant Treasurer and Minister for Financial Services Stephen Jones said.
“We are supportive of the government holding all providers in the sector to the same minimum standard,” the company said in a statement.
The Australian Finance Industry Association (AFIA) also welcomed the legislation, saying it provided a “solid regulatory foundation for the BNPL sector.”
Consumer Action Law Centre chief Stephanie Tonkin said more than half of the people presenting to financial counsellors in Australia are struggling to pay off BNPL debt.
The original article contains 635 words, the summary contains 148 words. Saved 77%. I’m a bot and I’m open source!
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Users of buy now, pay later (BNPL) services may soon have to undergo credit checks under proposed law reform introduced by the federal government.
A BNPL service allows the consumer to buy a product but delay the payment, usually paying it off in instalments over a few weeks.
The proposed legislation will put in place consumer protections while maintaining the innovation and competition introduced by the sector, Assistant Treasurer and Minister for Financial Services Stephen Jones said.
“We are supportive of the government holding all providers in the sector to the same minimum standard,” the company said in a statement.
The Australian Finance Industry Association (AFIA) also welcomed the legislation, saying it provided a “solid regulatory foundation for the BNPL sector.”
Consumer Action Law Centre chief Stephanie Tonkin said more than half of the people presenting to financial counsellors in Australia are struggling to pay off BNPL debt.
The original article contains 635 words, the summary contains 148 words. Saved 77%. I’m a bot and I’m open source!