The Australian Securities and Investments Commission (ASIC) has launched a consultation on new regulatory guidance for buy now, pay later (BNPL) providers ahead of upcoming legal changes.
From 10 June 2025, BNPL products will be regulated under the National Consumer Credit Protection Act 2009,
This requires providers to hold a credit licence and comply with various obligations, including responsible lending requirements.
The changes, introduced under the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, extend the National Credit Act and National Credit Code to BNPL contracts.
ASIC has released Consultation Paper 382: Low Cost Credit Contracts (CP 382) and a draft regulatory guide (RG 000) to help industry participants understand their compliance obligations.
The draft guidance outlines key requirements, including modified responsible lending obligations and provisions allowing BNPL providers to make materials available electronically.
Under the new framework, BNPL contracts classified as low-cost credit contracts under the National Credit Act will be subject to specific regulatory obligations.
ASIC’s guidance clarifies how providers can comply, including the option to adhere to modified responsible lending standards.
The regulator is seeking feedback from industry stakeholders on CP 382 and the draft regulatory guide.
Submissions can be sent via email to rri.consultation@asic.gov.au with the subject line “Feedback on CP 382” by 5pm AEDT, 7 March 2025.
The final regulatory guide is expected to be released in May 2025.
Featured image credit: Edited from Freepik
