Buy now, pay later (BNPL) providers in Australia are facing new regulatory requirements that necessitate immediate action to ensure compliance. The Australian Securities and Investments Commission (ASIC) has announced transitional arrangements allowing BNPL providers to continue their operations while applying for the necessary credit licenses. Providers without a credit license must submit their applications by June 10, and ideally by May 11, to take advantage of these transitional provisions. Additionally, they must become members of the Australian Financial Complaints Authority. For those already holding a credit license, it’s essential to verify that their license covers BNPL contracts. If not, they must apply for a variation. The ASIC emphasizes the importance of early application submission to facilitate a smooth transition and compliance with the new regulations, which aim to enhance consumer protection and ensure responsible lending practices within the BNPL sector.
Read the full article here.