They are still using the term 'credit checks'. All BNPL...

They are still using the term 'credit checks'. All BNPL providers have always done credit checks, but what they are talking about is determining a person's capacity to pay - by finding out their source of income, getting proof of it and then finding out their expenses and other debts. If it does not stack up they don't get a facility.

That is what they call 'credit checking', but it is actually finding out a person's ability to pay and if they cross the legislation they will cop a shellacking and put their credit licence at risk. Same in the US and NZ and it will make it very hard for BNPL providers, which is why they are all on a mission to do credit card lending instead. Most of Affirm's business is from high interest rate loans at point of sale.