The federal government is considering making changes to buy now pay later regulations as uptake of the services climbs in Australia.
Buy now pay later under microscope
Buy now pay later customers are likely to be subject to credit checks to stop consumers getting themselves into financial hot water with the popular payment schemes.
Financial Services Minister Stephen Jones flagged the changes on Monday, saying guardrails were needed to ensure customers didn’t rack up debts they weren’t able to pay back.
The government is inviting submissions into three changes recommended by Treasury as the number of buy now pay later accounts in Australia from providers such as Afterpay, Zip and Klarna swell past seven million.
The options include a new “affordability test” and bringing the services under the umbrella of the national consumer credit act either partially or completely.