Buy now,pay later providers including Afterpay,Zip and Klarna will be brought under the Credit Act in changes that have been a long time coming.
The government will regulate Afterpay and its rivals as credit,closing a gaping loophole – but there’s a twist.
A legal change will bring buy now,pay later providers closer in line with credit providers,including requirements to comply with industry minimum standards.
Buy now,pay later operator Zip’s move to cut ties in a range of international markets is a stark reversal of its plans two years ago to become a global business.
Zip Co co-founder Peter Gray has talked up the fintech’s resilience,even as the market worries about how quickly the embattled fintech is burning through cash.
Zip co-founder Peter Gray warned against bringing the entire BNPL sector under the same regulatory framework as big-ticket personal debt products such as credit cards or mortgages.
As the number of Australian BNPL accounts has grown beyond 7 million,the government has unveiled three options for tighter regulation of the industry.
There’s an issue with the level of difficulty resolving a problem with the digital service,a significant,global player in the fintech space.
Zip Co has vowed to further reduce burning cash on its overseas operations,as the company shutters its operations in the UK.
“Certainly,reports of our death are greatly exaggerated,” says Peter Gray,co-founder of embattled buy now pay later business Zip Co.
Embattled fintech Zip Co is cutting the number of products it offers and reviewing its overseas businesses for write-downs.