On May 22 2023, the Australian Government announced an additional set of regulations for the Buy Now Pay Later (BNPL) sector, including Afterpay.
The decision recognises something that we’ve known from the start - that BNPL has provided a better way to pay and shop for millions of Australians and helped thousands of Australian merchants to grow their business.
The proposed new regulations recognise that BNPL products like Afterpay are distinctly different from traditional credit cards and need a dedicated regulatory framework to reflect this.
Afterpay has been closely engaged in this process and has always supported fit-for-purpose regulation of the sector.
What are the proposed new regulations?
The Government will now begin detailed consultation on the specifics of the new regulations.
When will the new regulations take effect?
The proposed regulatory changes are not expected to take effect until some time in 2024. Exact timing is still to be determined.
Will the regulation of the BNPL sector affect how I use Afterpay?
Details are still to be confirmed on how and when the new regulations will come into effect, so we will wait for the final determination to update you. But we can say that if you continue to be a customer in good standing, paying on time, the experience should broadly continue as it does today.
Will the regulation of the BNPL sector require Afterpay to conduct credit checks on my account?
Nothing will change in the immediate term, further details on the new requirements, including credit checks, will be announced in due course. Once this occurs, we will communicate with you clearly if any changes will be applied.
Should I do anything now to get ahead of any changes?
Just continue to be a customer in good standing, paying on time. There are no other changes necessary at this time. We will share any key updates with you along the way and will communicate with you clearly if any changes will be applied.