Afterpay and Zip Co sign on to Australia's new buy now pay later code of practice

Australia’s buy now pay later (BNPL) sector has agreed to a code of practice that came into effect on Monday.

Developed by the Australian Finance Industry Association (AFIA), the code is touted as being a “proactive approach to increasing consumer protections” that goes “beyond current regulatory obligations for BNPL products or services”.

BNPL is the name for a kind of credit payment that allows for the purchase of goods without having to pay immediately. Instead, users can pay for the purchased goods later or in instalments.

BNPL is offered by fintechs such as Afterpay, zipPay, and Klarna, but it’s also a service customers of the likes of Amazon can use when purchasing through its online marketplace.

Afterpay, Brighte, Humm Group, Klarna, Latitude, Openpay, Payright, and Zip Co are currently accredited to the code.

Shadow Assistant Treasurer Stephen Jones said the code is the first step towards an appropriate regulatory regime for the emerging sector.

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Source: Afterpay and Zip Co sign on to Australia’s new buy now pay later code of practice | ZDNet