FinTech Australia statement on new Buy Now Pay Later legislation
FinTech Australia is pleased to see legislation for Buy Now Pay Later (BNPL) products pass the Australian Parliament on 28 November 2024. The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 provides strong consumer outcomes while recognising the lower risk and lower cost of BNPL compared with other forms of credit.
FinTech Australia has worked closely with its members, Government and other stakeholders to ensure the legislation is fit-for-purpose and reflects how consumers use BNPL products. The new laws also provide certainty for providers in the sector, many of whom have long awaited these reforms and have already adopted a number of the high standards in the legislation voluntarily.
“BNPL is an inherently Australian innovation that has been replicated across the world. Not only has it brought safer credit within the reach of more Australians, it has also provided much-needed competition in the consumer credit sector. The new laws passed today will ensure strong consumer protections while ensuring Australians can continue to access the benefits of BNPL” said FinTech Australia Head of Policy, Katie Wilson.
Key measures included in the legislation and supported by FinTech Australia and its members include:
a new category of ‘low‑cost credit’ under the Credit Act, to reflect the lower risk and lower cost of BNPL compared with other regulated forms of credit;
requiring BNPL providers to hold an Australian credit licence; and
scalable responsible lending obligations, that recognise how consumers use BNPL products.
FinTech Australia’s next priority is to continue closely consulting with our members, the Minister and Treasury to ensure the regulations supporting the new laws are proportionate and sustainable.
