The Australian Securities & Investments Commission has launched a consultation on new regulatory guidance for the buy now pay later (BNPL) sector, ahead of BNPL products becoming subject to new consumer credit laws from June 2025. The proposed guidance is intended to clarify how providers should comply with the licensing and conduct framework as BNPL contracts are brought within the National Consumer Credit Protection Act 2009. ASIC has published Consultation Paper 382 and draft Regulatory Guide 000 on low cost credit contracts, focusing on BNPL contracts that meet the definition of a low cost credit contract and therefore attract specific obligations. The draft guidance covers key requirements including holding an Australian credit licence, complying with modified responsible lending obligations where available, and meeting requirements for providing materials electronically; ASIC also notes it previously issued Information Sheet 285 in January 2025 on credit licensing requirements for BNPL-related credit activities. Feedback on the consultation is due by 5pm AEDT on 7 March 2025. The reforms are set to commence six months after Royal Assent, being 10 June 2025, unless an earlier date within that six-month period is fixed by proclamation.
Australian Securities & Investments Commission 2025-02-07
Australian Securities & Investments Commission consults on draft low cost credit contract guidance for buy now pay later providers
The Australian Securities & Investments Commission (ASIC) has begun consulting on new guidance for the buy now pay later (BNPL) sector, which will be subject to new consumer credit laws from June 2025. The guidance clarifies compliance with the National Consumer Credit Protection Act 2009. ASIC's Consultation Paper 382 and draft Regulatory Guide 000 cover low-cost credit contracts, requiring an Australian credit licence and modified responsible lending obligations. This follows ASIC's January 2025 Information Sheet 285 on BNPL credit licensing requirements.