Consumer groups demand stricter regulation of buy now, pay later loans to reduce harm

Consumer advocates say providers of buy now, pay later loans should be regulated in the same way as credit cards, given that the BNPL is being encouraged fo use when buying everyday items. Photograph: Dan Peled/AAP

Buy now, pay later providers should be regulated like other credit products to protect consumers, given the potential harm caused during the cost-of-living crisis, a coalition of consumer groups has said.

On Monday, the federal financial service minister, Stephen Jones, released a Treasury paper for public consultation. It contained three options for better regulating buy now, pay later (BNPL) services such as Afterpay, including by treating them the same as credit cards under the National Consumer Credit Protection Act.