Is buy now, pay later regulated in Australia?

Yes. Since June 10, 2025, BNPL providers such as Afterpay, Zip and Klarna must hold an Australian credit licence, join AFCA and follow responsible lending obligations adapted to low-cost credit.

What the rules require

• An Australian credit licence for BNPL providers.
• Membership of the Australian Financial Complaints Authority, giving customers an external dispute route.
• Responsible lending checks, adapted to the low value and short term of BNPL credit.
• Disclosure of terms and fees.

Why the change

BNPL grew quickly in Australia, one of its earliest large markets. Concerns about late fees and debt led the government to bring BNPL under consumer credit law with a tailored regime.

Effect on shoppers

More checks before approval, clearer terms and a complaint path. BNPL remains widely available at checkout.

Effect on merchants

Little change in how BNPL works at checkout. Merchants continue to receive payment upfront from the provider, minus a fee.

What it means for payment operators

For your merchants in Australia, BNPL remains a common checkout option. Adding licensed BNPL providers through one platform, alongside cards and account-to-account methods, keeps the checkout complete.