Publication
BNPL – how are governments in the UK, US and Australia responding?
Buy now, pay later (BNPL) schemes have surged in popularity, providing for short-term financing that allows consumers to make purchases and pay for them at a later date. Generally, the majority of BNPL users are younger consumers under the age of 35 who are sometimes less financially literate than older generations. Most common BNPL credit agreements have fallen largely outside the scope of existing regulatory regimes. Recently, governments have sought to amend their regulatory frameworks in a way that would bring BNPL into scope. Such amendments seek to ensure that consumers are protected from irresponsible lending practices that could lead to over indebtedness. Following on from our previous Regulation Around the World issue on BNPL, this short briefing note provides a high-level snapshot of the state of play for BNPL legislation in three key markets – UK, US and Australia.