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Achi news desk-
Announcement by the government of the proposed new Buy Now Pay Later (BNPL) regulations, the withdrawal from offering BNPL products is expected to be swift. BNPL businesses lose access to some of their revenue drivers:
- Late fees are limited to $10 per month (postpaid currently at $68).
- Annual fees are limited to $200 in year 1 ($125 thereafter).
- Australian credit license required.
- Real credit checks available.
We have already seen retreat moves. Hmm, for example.
Click here for the Ministry of Finance’s explanatory document explaining the changes. Click here to see the draft legislation.
What does this mean for us? BNPL helped people to purchase who did not want to use traditional credit or LayBy. To keep these shoppers, retailers will need alternatives. While the banks have adapted and are planning more in this area, we could consider refreshing our approach to LayBy. Doing nothing is not an ideal approach.
