Having exploited the regulatory blind spots and ultra-low interest rates to the hilt, the buy now, pay later sector now faces a grim reality check.
After operating for more than ten years in the finance industry’s regulatory blind spot, the day of reckoning is nigh for the buy now, pay later industry.
To say that BNPL has simply fallen between the regulatory cracks of the Australian Securities and Investments Commission , the Reserve Bank and the Federal Government would be a generous interpretation. There was a distinct disinclination from the regulators to have any hand in turning down the music once the BNPL party started.
ASIC’s 2020 report found that the total amount of credit extended in the BNPL industry had almost doubled in 12 months and that one in five consumers were missing payments. Ironically, there could be a spike in the use of BNPL as cash constrained consumers move into the Christmas period. But rising interest rates not only put pressure on consumers, they also squeeze the BNPL operators who have to fund the credit provided to consumers.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Consumer groups demand stricter regulation of buy now, pay later loans to reduce harmFederal government releases options paper with toughest proposal agreeing BNPL should be regulated like credit cards
Read more »
New rules loom for buy now, pay later sectorBNPL has quickly become one of the most popular ways to buy goods and services. 9News
Read more »
The King has enough challenges without having to wrestle with his pastWhile Charles has been cleaning up after his relatives, his own scandalous past has been laid bare to a new generation thanks to The Crown.
Read more »
Oversight coming for booming buy now pay later industryAs the number of Australian buy now pay later accounts has grown beyond 7 million, the government has unveiled three options for tighter regulation of the industry | rachelclun
Read more »
AFR Infrastructure Summit updates LIVE: Catherine King flags ‘hard-nosed’ infrastructure decisions aheadAustralia’s $16 billion buy now, pay later sector could be subject to same regulations as credit cards; Call to close emissions “loophole” for coal mines. Follow updates here.
Read more »
Oversight coming for booming buy now pay later industryAs the number of Australian BNPL accounts has grown beyond 7 million, the government has unveiled three options for tighter regulation of the industry.
Read more »