Australians with mounting debt turning to BNPL (Buy Now, Pay Later) products like Afterpay need much more than a self-imposed cap, an expert has warned.
Afterpay, which has millions of users in Australia alone, this week introduced a voluntary spending cap which will let people set their own limits in the app.
"I don't think it's going to address any of the problems that relate to people in financial difficulty." BNPL isn't regulated like other lenders in Australia – government reforms are in the pipeline and are expected this year."I think it's probably more appropriate that the government imposes some regulation that is similar to the regulations that govern responsible lending," Grafton said.
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