The Australian Government has announced a new regulatory framework for the Buy Now Pay Later (BNPL) sector, including Afterpay. These regulations will come into effect on June 10, 2025.
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.
When will the new regulations take effect?
The new regulations will come into effect on June 10, 2025. While we continue to assess the final details, our priority is to ensure a seamless transition for all our customers. We will provide timely updates and clear communication of any changes.
Will the new regulations affect how I use Afterpay?
We're working 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’ll continue to keep you informed of any changes that may affect you.
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 bad credit score affect my spend limit?
Having a bad credit score won't necessarily result in your spend limit being lower, just like having a good credit score won'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?
From June 10, 2025, when we perform a credit check it may be visible to other providers on your credit report. To perform a credit check, we’ll share your personal details with the credit reporting bureau, but we will not be reporting your credit information (such as repayment history or your spend limit) to credit reporting bureaus. In the future, if we begin reporting this information — we’ll let you know before anything changes.
Should I do anything now to prepare for these changes?
There’s nothing you need to do at this stage. We are committed to keeping you informed and will provide notice of any upcoming changes.
For more information, stay tuned for updates via your email, our website and the Afterpay app.
What if I don't agree to the updated Terms or Privacy Policy that will apply from June 10, 2025?
The updated Terms and Privacy Policy will apply to your use of Afterpay from June 10, 2025.
If you don’t want updated Terms or Privacy Policy to apply to your use of Afterpay, you will need to close or deactivate your Afterpay account before June 10, 2025. Please refer to this article for instructions on how to close or deactivate your account, and note that you will need to repay any outstanding balance before closing or deactivating your account