FinTech Australia, the peak industry body representing over 420 fintech organisations, has shared its insights on the Australian Government’s proposed regulation for the buy-now-pay-later (BNPL) industry.
The draft legislation seeks to amend the National Consumer Credit Protection Act 2009 (Cth) and the National Consumer Credit Protection Regulations 2010 (Cth), subjecting BNPL providers to the same regulatory framework as other credit products.
Dylan Burke, corporate partner at DLA Piper, led the legal team assisting FinTech Australia in this endeavour.
Nick Kavass, head of policy at FinTech Australia, emphasised the importance of fostering a regulatory landscape that encourages fintech innovation.
“It’s critical the regulatory landscape encourages and allows the Australian fintech sector to remain globally competitive and innovative,” he said. “We support a regulatory framework which is flexible, adaptable, and proportionate to consumer risk.”
FinTech Australia has been engaging in multiple consultation processes to shape legislation affecting the fintech industry. It said the submission on BNPL regulation reform is a continuation of its efforts to make Australia a global leader in fintech innovation and investment.
Burke reiterated the need for regulatory certainty to ensure the ongoing success of BNPL providers and the wider fintech sector.
“Australia’s fintech sector has been a global leader in innovation, so it’s important the regulatory framework doesn’t stifle this momentum – but at the same time, we recognise that some legislative provisions that currently regulate BNPL providers are dealing with products and services that were not necessarily envisaged at the time those legislative provisions were introduced,” he said.
FinTech Australia and DLA Piper are engaging with the Australian government to ensure the new framework reflects the needs of the BNPL industry and the broader fintech sector.
