Consultation now open on Buy-Now, Pay-Later
Published: 04 November 2021
Consultation has opened today on Buy-Now, Pay-Later, as part of the Government’s work to ensure this sector delivers long-term benefits for consumers.
Buy-Now, Pay-Later (BNPL) is a relatively new, innovative and fast growing credit alternative in New Zealand, which is particularly popular for online purchases. By using BNPL, people can get access to goods or services now but pay for them later in a series of instalments.
Unlike credit cards, or other common credit products, BNPL products do not charge interest or fees (other than missed payment fees) or take a security interest over goods. Because of this, BNPL is not required to comply with the rules under the current consumer credit contract legislation.
While there are benefits from the BNPL sector for consumers, businesses and the wider economy, the Government is concerned that for some consumers the use of BNPL could result in financial hardship.
A discussion document and information on how to have your say is now available on the Ministry of Business, Innovation and Employment’s website, along with an easy-to-read summary document and the link to an online survey where people can share their experience of using BNPL.
The feedback received during this consultation will help the Government to understand and address potential triggers of financial hardship, and inform how to achieve an effective BNPL sector.
Read the media release on the Beehive website.
MBIE media contact
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