Corporate and and financial services the Australian Securities and Investment Commission (ASIC) is seeking feedback on its new regulatory guidance for the buy now pay later (BNPL) sector
New laws offering increased protections for consumer users of BNPL kick in from June 2025, treating BNPL as a credit product. That means BNPL providers will need to hold a credit licence and comply with obligations under the National Consumer Credit Protection Act going into the 2026 financial year.
The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, will mean the the buy now pay later reforms commence six months after the Act receives Royal Assent on 10 June 2025, or by a date within that period.
The amendments to the National Credit Act to extend the National Credit Code to buy now pay later contracts.
ASIC has released draft Regulatory Guide 000, Low cost credit contracts (Draft RG 000) together with Consultation Paper 382, Low cost credit contracts (CP 382) for the industry and other stakeholders to provide feedback on.
Where a buy now pay later contract meets the definition of a low cost credit contract, specific obligations will apply. For example, providers of low cost credit contracts will be able to elect to comply with modified responsible lending obligations.
The draft RG 000 is intended to help providers of low cost credit contracts to understand their key obligations, including how to comply with the modified responsible lending obligations and requirements when making materials available electronically.
ASIC welcomes feedback on the proposed guidance as set out in CP 382.
In January, ASIC released Information Sheet 285 which explains the credit licensing requirements that apply to anyone engaging in credit activities involving buy now pay later contracts.
Feedback on the changes is due by 5pm AEDT, 7 March 2025 to [email protected] with the subject line ‘Feedback on CP 382’.
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