New regulations hit Buy Now, Pay Later providers

Hands holding mobile phone. Source: iStockphoto / B4LLS/Getty Images

Buy Now, Pay Later providers like Afterpay and Zip have been hit with new government regulations. The new laws classify the products as a form of credit, requiring responsible lending obligations, credit checks and further protections for customers, but what does that mean for the roughly 40 per cent of Australians who use the products?

For millions of Australians, Buy Now, Pay Later providers like Afterpay or Zip have become a common tool to take the pain out of purchases by breaking the cost of goods or services into smaller chunks paid over several weeks.
As of Tuesday the 10th June, strict new regulations from the Albanese government have come into play with Buy Now, Pay Later providers now treated similarly to a credit card.
This last change means that your Buy Now, Pay Later debts could impact your credit score and could impact a customer's future borrowing capacity for a house or a car.

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