BNPL Is Changing—Is Your Business Ready?
How new BNPL rules will affect your business and what to do next
Australia is moving towards more tightly regulated Buy Now, Pay Later (BNPL) services, bringing them closer in line with traditional credit products such as credit cards. If your business offers or relies on BNPL services, these changes may directly affect your operations and compliance obligations.
At Law Team, we understand how critical it is for your business to stay informed and adapt quickly to regulatory changes. Read on to learn how the most recent legislative developments may impact your business and the steps you should consider taking.
What are the current Australian laws regulating BNPL in 2026?
Since the deadline of June 10, 2025, the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 has legally defined BNPL as a Low-Cost Credit Contract. BNPL providers are no longer operating outside Australia’s consumer credit framework. Under recent reforms, they must now hold an Australian Credit Licence (ACL) and comply with modified Responsible Lending Obligations (RLOs) under the National Consumer Credit Protection Act. Source: Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024
What are the key compliance changes for businesses using BNPL?
Australian businesses must adapt to three key shifts:
BNPL providers must obtain mandatory membership in the Australian Financial Complaints Authority (AFCA)
Companies must conduct unsuitability assessments to limit lending to vulnerable consumers
Late fees may be subject to regulatory caps under the new framework
Businesses using BNPL must follow ASIC Regulatory Guide 281 (RG 281), which outlines how compliance laws are now enforced. Source: Regulatory Guide 281 - Low-Cost Credit Contracts
What practical steps can Australian merchants take to comply with BNPL regulation?
If you use BNPL services in your business, here are some practical steps you can take right now:
Use the ASIC Professional Register to audit your current BNPL partnerships to ensure that providers have secured their ACL, as non-compliant providers may be forced to shut down, disrupting your payment options.
Keep your consumers updated about BNPL changes with strategic marketing.
Monitor shifts in BNPL usage among your clients and switch to alternative payment methods if approvals decline.
Stay up to date on the latest developments from your BNPL provider.
How can Law Team assist businesses with BNPL compliance?
Navigating BNPL regulatory change doesn’t have to be overwhelming. At Law Team, we provide practical legal advice to help Australian businesses adapt, remain compliant, and thrive. Our services include:
Reviewing BNPL agreements to ensure compliance with Australian law
Advising on alternative payment strategies to protect your business and customers
Supporting businesses in adapting to legislative changes
With our preventative approach, we help your company stay one step ahead in Australia's evolving BNPL landscape.
About the Author: Erin Vassallo
Erin Vassallo is the Principal Solicitor and founder of Law Team, a values-led law firm with a strong reputation across New South Wales and Queensland. With over two decades of experience in commercial, construction, and property development law, Erin is a trusted advisor to developers, landowners, and business owners navigating complex projects and legal risk.
Her hands-on experience includes joint ventures, structuring development deals, contract negotiation, risk mitigation, and project governance across residential, commercial, and mixed-use developments. Erin holds qualifications in law, political science, mediation, and disruptive strategy (Harvard Business School) and is the founder of Certified BCorp Law Team, committed to ethical business practices and social impact.
Frequently Asked Questions
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Potentially. Under ASIC RG 281, providers must now conduct more rigorous unsuitability assessments. While loans under $2,000 have a "rebuttable presumption" of suitability (which means they are processed faster), consumers with high debt-to-income ratios may face more rejections than in the unregulated era. Merchants should carefully monitor their conversion data as these checks become standard.
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Yes. If your marketing conveys a false impression, such as promising "guaranteed approval," you may be held liable for misleading or deceptive behaviour. Because new laws require providers to assess each customer's suitability, any business that disregards these "credit checks" may result in significant fines under Australian consumer protection laws.
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Since June 10, 2025, any BNPL provider without an Australian Credit Licence (ACL) is operating illegally. To protect your cash flow, verify your partner’s status on the ASIC Professional Register immediately.