it's important to understand the government WILL NOT legislate prescriptive resp lending rules for bnpl and still maintain principle based rules for traditional lenders.
government has ZERO appetite to design prescriptive nccp legislation. it will remain 'principles based' for traditional lenders.
so, cpl of bnpl scenarios
scenario 1, government legislates prescriptive nccp rules imposed on bnpl. probability, NIL. impact, SEVERE
scenario 2, government legislates and extends existing principle based nccp to bnpl. probability, NIL. impact, minor (greater impact on transactional bnpl providers like apt)
scenario 3, government legislates and designs new 'fit for purpose' principle based legislation to bnp. probability, likely. impact, minor
so scenario 3..it's just a matter of time...
on competition, as I said previous post, the pie is growing, plenty of room for more players...big will swallow the small.
