“If it looks like a duck, walks like a duck, sounds like a duck, it’s a duck – and it should be regulated as a credit product.”

In this AFR Story today, Financial Services Minister Stephen Jones said Labor will amend national credit laws to encompass the emerging BNPL sector by mid-2023.

“Financial products offered by companies such as Afterpay and Zip now fall outside the legal definition of credit as they do not charge interest and have short repayment cycles.”

It had to come!

Disc: I don’t hold shares in BNPL

I read an interesting article today (courtesy of The Guardian) which discussed ASX-listed BNPL companies. Most of these companies have been smacked by the market in recent times - and perhaps justifiably so - as we have seen sales growth decline and cash burn increase.

More than 12 BNPL companies are listed on the ASX - none make a profit and regulatory concerns still persist. And more, the industry is only becoming more congested; these companies are now competing for market share against the likes of PayPal and Apple.

Article is here for those that are interested.