Treasury published an options paper titled
"Regulating Buy Now, Pay Later in Australia" late last year and invited comments and feedback. The nature and extent of regulation is obviously key to bnpl operators and a huge risk. The nature and extent of regulation is also potentially a key benefit to those who have existing interests but are being "disrupted" by bnpl and who otherwise are set to lose market share, revenue and profits. Imo the whole regulation process has dragged on far too long, but submissions to Treasury are now available online at this link and may give a hint of how things could look in the not too distant future.
https://treasury.gov.au/consultation/c2022-338372If you have a few weeks spare, they're worth a read, lol. Many submissions assess and comment on the past and current bnpl playing field and effectively just "vote" on the options provided, but imo have missed part of the point of the paper which is probably to debate and elaborate on the options and provide more innovative ideas for consideration. Some have actually done this - mostly the international giants such as Ebay, Paypal, Afterpay who have some skin in the game. Their proposals and ideas will likely also be read by the CFPB in the US (which is why these submissions are extremely relevant to Sezzle).
A few worth a read, imo:
ANZ (Option 3)
CBA (Option 2)
NAB (Option 2)
Westpac (Option 3)
ASIC (Option 3)
Ebay (Option 1 or 2)
Paypal (All 3 - need to be tailored)
But if you only read one, read Afterpay who support Option 1 with aspects of Option 2. It includes some good commentary on the key differences between bnpl vs traditional forms of credit plus some balanced ideas. Perhaps mandating the BNPL code will be the first step??
https://treasury.gov.au/sites/default/files/2023-02/c2022-338372-afterpay.pdf
