Buy Now, Pay Later is commonplace in Australia, with at least one third of consumers having at least one account.
The interest-free loans these services provide can start at one dollar and max out at thirty thousand dollars, with very little idea if the person who borrows the money can pay it back.
The new regulations will be put in place to make sure that Buy Now, Pay Later companies will be treated similarly to any other credit lending organisation.
The public will have to wait and see how well these regulations will work, as it is estimated that they will not be rolled out until the end of this year.
Produced By: Dominic Giles
Featured In Story: Associate Professor Andrew Grant of the University of Sydney’s Business School , and Mr. Patrick Veyret the Head of Policy and Government Relations at the Australian consumer association CHOICE
First aired on The Wire, Tuesday 23 May 2023