The Australian Financial Complaints Authority (AFCA) published an update welcoming new rules for low-cost credit contracts that will bring buy now pay later (BNPL) products under the National Credit Act from 10 June 2025. The change will require BNPL providers to hold AFCA membership and an Australian Credit licence. From commencement, BNPL customers will have access to mandated independent dispute resolution through AFCA where complaints cannot be resolved directly with the provider. BNPL providers will also face new obligations relating to responsible lending and responses to financial hardship requests, with AFCA noting it is working to help consumers and firms navigate the transition. AFCA set 26 May 2025 as the final day for membership applications to be received and processed ahead of the 10 June 2025 regulatory start date.
Australian Financial Complaints Authority 2025-03-28
Australian Financial Complaints Authority outlines AFCA membership requirement for BNPL providers under National Credit Act from 10 June 2025
The Australian Financial Complaints Authority announced new rules bringing buy now pay later products under the National Credit Act from 10 June 2025, requiring providers to hold AFCA membership and an Australian Credit licence. BNPL customers will gain access to independent dispute resolution, and providers must adhere to responsible lending and financial hardship obligations, with a membership application deadline of 26 May 2025.