BNPL regulations now in effect in Australia
As of 10 June 2025, Australian Government regulations are in effect for the Buy Now Pay Later (BNPL) sector, including Afterpay.
The regulatory framework recognises something that we’ve known from the start – that BNPL products like Afterpay are distinctly different from traditional credit cards and require a tailored regulatory framework.
Afterpay has been closely engaged throughout this process and has always supported fit-for-purpose regulation that reflects the unique benefits of BNPL.
What are the new regulations?
The Government has outlined a series of regulatory changes that will apply to the BNPL sector. These changes aim to enhance transparency, consumer protection, and responsible lending while ensuring BNPL continues to be an accessible and flexible payment option
Will the new regulations change how I use Afterpay?
We worked to ensure that we deliver the changes in a way that positively impacts your experience wherever possible. If you continue to use Afterpay responsibly and pay on time, your overall experience should remain largely the same. We’re committed to delivering any changes in a way that enhances your experience and will keep you informed if anything impacts you directly.
As part of the new regulations, you may notice that you receive more information from us, including notifications when your spend limit changes, or your monthly account statement. These updates are intended to keep you informed about your Afterpay account.
Will Afterpay be conducting credit checks?
From June 10, 2025, we’ll conduct credit checks to assess new customer applications for an Afterpay account.
We may also perform a credit check when assessing you for a spend limit increase and will collect your consent to the spend limit increase beforehand. Without completing a credit check, we may not be able to assess you for a spend limit increase.
Will a low credit score lower my spend limit?
Not necessarily. A low credit score won’t automatically result in a lower spend limit and having a high credit score doesn’t guarantee a higher spend limit either.
If a spend limit increase isn’t right for you at the time we assess your eligibility, we won’t increase your existing spend limit.
Will Afterpay be sharing my information with credit reporting bureaus?
When we conduct a credit check, we share your personal details with the credit reporting bureau so they can locate your credit file. This enquiry will appear on your credit report.
We do not currently report your credit information including repayment history, spend limit, to credit reporting bureaus.
In the future, if we begin reporting this information, we’ll let you know in advance.
Do I need to do anything?
There’s nothing you need to do at this stage. We are committed to keeping you informed and will provide notice of any changes.
For more information, stay tuned for updates via your email, our website and the Afterpay app.
What if I didn’t want the updated Terms and Privacy Policy to apply?
The updated Terms and Privacy Policy took effect on 10 June 2025. If you didn’t wish to continue under the updated Terms (which now form your Credit Contract), you would have needed to close your Afterpay account before that date. You can still close your account if you wish — just follow these steps.