Australia Tightens Buy Now, Pay Later Laws to Protect Consumers

Australia strengthens consumer protections for buy now, pay later services. New regulations, effective June 10, 2025, will require providers to obtain credit licenses, conduct background checks, join a complaints authority, and cap fees. This follows concerns about the industry's rapid growth and potential risks to consumers. Former Financial Services Minister Stephen Jones praised the changes, stating they "strike the right balance between giving Australians access to innovative products and ensuring they are protected from potential harm." The changes address issues such as debt accumulation and lack of oversight in the previously unregulated sector, aiming to bring greater transparency and accountability to the industry.