Financial Technology (FinTech) Innovation in Australia: Renewing Bank Negligible Loans (BNPL)

A group representing more than four hundred and twenty-two fintech companies, FinTech Australia, has spoken out against the Australian government’s plans to regulate the buy-now-pay-later (BNPL) sector.

According to the proposed changes to the National Consumer Credit Protection Act 2009 (Cth) and the National Consumer Credit Protection Regulations 2010 (Cth), BNPL providers would be subject to the same regulations as other types of credit solutions.

Australian Financial Technology Industry Perspectives on New Laws
Nick Kavass, head of policy at FinTech Australia, stressed the need to cultivate a regulatory environment that promotes innovation in fintech.

Keeping the Australian fintech sector competitive and inventive on a global scale is of the utmost importance, according to him, and the regulatory landscape must support this. “We believe in a system of regulations that is versatile, responsive, and reasonable in relation to the dangers faced by consumers.”

FinTech Australia has undertaken a number of consultation processes to influence laws that will impact the fintech sector. According to the submission, the change in BNPL regulations is part of a larger attempt to position Australia as a world leader in financial technology (fintech) investment and innovation.

DLA Piper supports information from FinTech Australia
Burke reiterated how important it is for the fintech industry as a whole, and BNPL providers in particular, to have regulatory clarity.

It is crucial that the regulatory framework does not hinder the innovation momentum of Australia’s fintech sector, which has been a global leader. However, it is acknowledged that certain laws governing BNPL providers are addressing products and services that were not originally intended when those laws were passed, he added.

Together, DLA Piper and FinTech Australia are lobbying the Australian government to include the BNPL industry’s and fintech’s larger concerns in the new framework.