Regulation is coming:
"The Commonwealth Bank has released data that it says shows customers who use buy now, pay later operators are more likely to overdraw their accounts and fall behind on repayments, as it ramps up a push for tighter regulation of the sector.
CBA’s analysis, provided to federal Parliament’s banking inquiry, says 7.2 per cent of its customers who used BNPL loans in 2020-21 overdrew their accounts, compared with 3.9 per cent of non-BNPL customers in a similar age bracket.CBA said 4.8 per cent of its customers who used BNPL operators had fallen behind on repayments, compared with 2.8 per cent of non-BNPL clients. It said customers who used BNPL products had a 6.4 per cent chance of entering financial hardship, compared with 4.9 per cent for customers in a similar age bracket who did not use BNPL products."
