Afterpay and Zip have shared differing opinions on new regulatory options put forward by the Treasury will impact the buy now, pay later sector.
In the Treasury’s paper, three options are offered. The first would amend the Credit Act to require that BNPL providers check that a certain product is affordable for a customer before it is offered.
The second option requires BNPL providers to gain a credit licence and operate within responsible lending regulations.
The third, and more strict option, would see BNPL loans enforced under the same laws as home loans, with the tighter checks this brings.
Treasury is seeking consultation by December 23, with plans to legislate in 2023.
Not surprisingly, Afterpay favours the first, least restrictive, option.