Government announces new protections for Kiwis using Buy-Now, Pay-Later

Published: 02 November 2022

The Government has today announced its next steps to protect consumers from potential financial harm when using Buy-Now, Pay-Later (BNPL).

BNPL is a growing form of credit, where people can access goods or services now but pay for them later in a series of instalments. It does not charge interest, although late fees are charged if a payment is missed.

The Credit Contracts and Consumer Finance Act 2003 (CCCFA) will be applied to BNPL, so consumers using BNPL will receive similar protections to borrowers in other credit contracts – like credit cards and personal loans. This is part of the Government’s work to ensure consumers are protected while enabling continued access to low-cost credit.

These protections will ensure consumers are better equipped to make informed decisions before using BNPL. It will also protect borrowers when issues arise, by requiring providers to have hardship processes in place and belong to a dispute resolution scheme.

To recognise the unique nature of BNPL, affordability assessments will only be required for larger BNPL loans. Smaller loans below a certain threshold will be exempt, so long as they carry out credit reporting.

The Ministry of Business, Innovation and Employment (MBIE) aims to commence consultation on the detail, including a proposed threshold of $600 and what will apply above the threshold, later this year. It is intended that final regulations will be made in 2023.

Further information is available on MBIE's website here:

Buy-Now, Pay-Later

Read the Minister's press release(external link) —

MBIE media contact


Last updated: 02 November 2022