BNPL is now regulated credit. What changed for borrowers?

Since 10 June 2025, buy now pay later providers have needed to operate under Australia’s credit licensing framework, subject to the transition arrangements set by the Australian Securities and Investments Commission (ASIC).

The change brings BNPL into the National Credit Code. Providers must hold an Australian credit licence or be authorised under one, belong to the Australian Financial Complaints Authority and meet obligations that include assessing whether the credit is suitable and affordable.

How large was BNPL before the rules changed?

Public Reserve Bank of Australia data shows that BNPL transactions were worth about $19 billion in 2022-23. That was around 2% of Australian card purchases. Active BNPL accounts were just over seven million, and the RBA’s 2022 Consumer Payments Survey found almost one-third of Australians had used BNPL in the previous year.

These are historical public figures, not an estimate of BNPL use in 2026. They show why policymakers treated BNPL as a significant part of the retail payments market.

What does regulation change?

The framework gives BNPL borrowers clearer consumer-credit protections and access to an external complaints process. Providers must assess suitability and affordability under the low-cost credit contract settings that apply to BNPL.

Regulation does not make every BNPL purchase affordable. A plan can still compete with rent, food, utilities, loan repayments and other instalments that fall in the same pay cycle.

Count the deductions, not only the purchase price

A purchase can look small when it is divided into instalments. The useful check is the total amount due across every active plan before the next two pays.

1. Open each BNPL account and list every active plan.
2. Record each remaining balance and deduction date.
3. Add any account, late or rescheduling fees that may apply.
4. Place the deductions beside essential bills and other debt repayments.
5. Check that the payment account will have enough money on each date.

MoneySmart warns that using several BNPL services can make repayments harder to track and can increase the risk of missed payments and fees.

What if a repayment is becoming difficult?

Contact the provider before a payment is missed and ask about hardship support. If the response does not resolve the issue, eligible complaints can be taken to the Australian Financial Complaints Authority.

Free, confidential financial counselling is available through the National Debt Helpline on 1800 007 007. Taking out more credit is not the only response to a crowded repayment calendar.

About the sources

This article uses public information from ASIC, Treasury, the Reserve Bank of Australia and MoneySmart. It does not use WeMoney member applications, connected-account data, transaction data, credit-file information or individual outcomes.

• ASIC: BNPL providers and the new credit laws
• Treasury: consumer protections for BNPL
• RBA: the evolving retail payments landscape
• MoneySmart: buy now pay later services

This article provides general information only. It is not financial or credit advice and does not take your circumstances into account.