Australia’s corporate watchdog joins calls for stricter regulation of buy now, pay later products

The Australian Securities and Investments Commission chair has warned some people are being driven to buy now, pay later by the cost-of-living crisis. Photograph: Xinhua/Rex/Shutterstock

Australia’s corporate watchdog has backed regulating buy now, pay later schemes including Afterpay and Zip in the same way as other credit products amid growing concerns about harms experienced by consumers.

In its submission made public on Thursday to a Treasury consultation on how to improve regulation of the providers, the Australian Securities and Investments Commission said it supported regulating BNPL products under the National Credit Act and the national credit code.