ASIC has launched a consultation on new regulatory guidance for the Buy Now Pay Later (BNPL) industry, calling on industry for feedback on the proposed guidance.
From June 10, 2025, providers of BNPL contracts will need to hold a credit licence that authorises them to engage in credit activities as a credit provider, subject to transitional arrangements.
According to ASIC, the new laws are designed to maintain the benefits of BNPL contracts while boosting protection for Australian consumers.
The corporate watchdog has released draft Regulatory Guide 000, Low cost credit contracts (Draft RG 000) together with Consultation Paper 382, Low cost credit contracts (CP 382) for industry and relevant stakeholders to provide feedback on.
The draft RG 000 is intended to help providers of low cost credit contracts to understand their key obligations, including how to comply with the modified responsible lending obligations and requirements when making materials available electronically.
Research from Statista indicates that 43 per cent of Australians use BNPL, with the largest proportion of this being among the Gen Z market.