Buy Now, Pay Later

We stopped new charges for Buy Now, Pay Later providers, which would have hiked the cost for consumers.

Buy Now Pay Later (BNPL) providers were about to face new lending regulations under the Credit Contracts and Consumer Finance Act (CCCFA). We found the proposed rules would impose high compliance costs even though BNPL firms often don’t charge interest and restrict borrowing after missed payments.

Unlike traditional lenders, BNPL providers earn most of their revenue from merchant fees, with only a capped portion from default fees. We recommended a full exemption for BNPL default fees, and Cabinet agreed. This outcome ensures consumers retain access to low-cost credit options without unnecessary extra costs.