As the birthplace of Afterpay and Zip, Australia has faced BNPL regulatory questions earlier than many other markets, and its approach has developed accordingly.
Where things stood historically
BNPL products were often structured to fall outside Australia’s National Consumer Credit Protection Act, since they were typically interest-free and structured as short-term deferred payment arrangements rather than traditional loans. This meant many of the standard responsible-lending checks required of banks didn’t automatically apply.
Increasing regulatory attention
- Australian regulators, including ASIC, have examined whether BNPL should be brought more formally under credit regulation
- Proposals have focused on affordability checks, clearer fee disclosure, and stronger consumer protections in cases of financial hardship
- Industry codes of practice have also been adopted voluntarily by some providers ahead of, or alongside, formal regulatory change
Check ASIC directly. Because this area has been actively evolving, confirm the current rules through ASIC’s Moneysmart website or official guidance rather than relying on any single article, including this one.
For how this connects to your credit file, read does Afterpay affect your credit score in Australia, or see the broader how BNPL works in Australia guide.