Consumers covered by new Buy Now Pay Later regulations

Consumers covered by new Buy Now Pay Later regulations

Buy Now Pay Later (BNPL) will now be treated like all other credit products in Australia, with the introduction of new regulations. The changes aim to better protect consumers who use BNPL services amid concerns about potential overspending and debt accumulation. An RMIT expert explains.

Ashish Kumar, Senior Lecturer in the School of Economics, Finance and Marketing

“With the introduction of the BNPL Act providers like Zip and Afterpay are now required to obtain credit licenses and comply with Australia’s consumer credit laws under the National Credit Code.  

“This regulatory shift was prompted by the rapid growth of BNPL services and concerns about consumer debt and financial hardship.  

“As a result, consumers now benefit from safeguards such as responsible lending checks, clearer disclosures, and access to dispute resolution - protections previously reserved for traditional credit products.  

“Additionally, BNPL usage will now be reported to credit bureaus, potentially affecting users’ credit scores.  

“While these changes enhance consumer protection, they also require BNPL providers to adapt to stricter compliance standards, fundamentally altering how these services operate in the Australian market.” 

Dr. Ashish Kumar is an accomplished academic at RMIT University, specialising in the empirical investigation of how social technologies transform consumer behaviour and marketing effectiveness. 

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

11 June 2025

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