Cash-strapped consumers who take on debt, often more than they can handle, frequently employ BNPL firms, which usually provide on-the-spot free-of-interest loans for short periods.
Since BNPL service providers refrain from charging interest, they are now immune from customer credit regulations.
Australia faces rising prices, which are currently at close to 30-year peaks, worries about repaying have grown.
According to Australia’s center-left Labour administration, BNPL needs to be deemed credit as it exerts the same effect on debtors.
Shopping industry data reveals that Australians made A$63.8 billion in transactions via the Internet in 2022.
The majority of the money made by BNPL companies comes from costing merchants a share of their earnings in return for sending customers to them.
BNPL companies claim to carefully track the debtor’s behavior.