Financial Services Minister Stephen Jones said the laws applying to the sector will not be identical to those governing other forms of debt like credit cards.
Mr Jones said BNPL products were clearly a form of credit and should be regulated.
He said the code would be a “starting point” for how the federal government would amend the credit act. “The call-out is that it’s different to historical forms of credit that require large amounts of interest charge to consumers to make the models work,” he told the ABC. “So I think that’s quite different to bringing buy now, pay later under the National Consumer Credit Protection Act.”the federal government would not establish a standalone act of parliament to regulate the sector.
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