ASIC is calling on Buy Now Pay Later providers to obtain licences.

The Australian Securities and Investments Commission (ASIC) has advised buy now pay later (BNPL) providers to prepare for new licensing requirements under the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024, enacted on 10 December 2024. 

From 10 June 2025, BNPL providers must hold an Australian credit licence authorising credit activities or secure a variation to their existing licence to comply with the updated National Credit Code. 

Providers operating without an approved application by this deadline risk engaging in unlicensed conduct.

ASIC has stressed the importance of acting early to complete the application process, including providing necessary documents such as criminal history checks. 

Applications must be lodged by 11 May 2025 to ensure acceptance before the 10 June cut-off.

Providers already holding licences for credit contracts can extend their authorisation to BNPL activities, but those without appropriate authorisation will need to apply for a variation. 

All providers must also become members of the Australian Financial Complaints Authority (AFCA) as part of the requirements.

ASIC encourages the industry to understand the impact of the reforms and update their systems to comply. Further guidance is available in ASIC’s Information Sheet 285. 

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