Buy Now Pay Later - Preparing for tougher regulation

On 22 May 2023, Treasury announced the Government’s intention to regulate the Buy Now Pay Later (BNPL) industry under the proposed Option 2 as presented by Treasury in its BNPL consultation last November. Under this option, the services will be subject to limited regulation under the National Consumer Credit Protection Act 2009 (Cth) (Credit Act). Considerable ambiguity remains regarding the practices that will be required to satisfy the new requirements.