Australia is eyeing stricter rules for buy now, pay later (BNPL) players to align with existing lending laws, Reuters reported, citing a paper from the Department of the Treasury.
The rules may include obligatory background checks for new users as well as a credit license requirement for providers.
Stephen Jones, the country’s financial services minister, has told local media that the BNPL sector is operating “outside the normal credit laws” and that a lot of people are “getting into hot water.”
Last month, a group of fintech players in Singapore – guided by the Monetary Authority of Singapore – launched a BNPL code of conduct to guarantee ethical practices and protect consumers in the industry.
The group looks to better oversee fees, a credit cap for users who haven’t shared income information, and ethical marketing. It also plans to set up a bureau for sharing credit information.
See also: BNPL struggles amid global recession – except in Southeast Asia
Editing by Miguel Cordon and Jaclyn Tiu
(And yes, we’re serious about ethics and transparency. More information here.)
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