Buy now, pay later services will be considered credit products by the end of the year. Here's how it will work

Afterpay was founded in 2014, and is the biggest player in the buy now, pay later industry. (Supplied: Afterpay)

Australia has joined the UK in regulating the buy now, pay later industry, under sweeping changes announced by the Financial Services minister on Monday.

Financial Services Minister Stephen Jones told a borrowing and lending conference in Sydney that buy now, pay later (BNPL) "looks like credit, it acts like credit, it carries the risk of credit" and therefore the services would be regulated as credit products.