BNPL created 100,000 jobs in 2021, says report fending off regulation

The report found consumers saved $102 million in interest payments last year by using buy now, pay later instead of credit cards, while 48 per cent of buy now, pay later users do not have a credit card.

For example, one in 14 buy now, pay later users have cut back on essentials to make repayments, while 22 per cent of customers used a credit card to make repayments.

After the federal election on May 21, consumer groups called for an independent inquiry to determine the form of regulation for BNPL, after Mr Jones said BNPL should be considered credit – but may not require the same level of regulation as credit cards.

Buy now, pay later is accepted by more than 135,000 Australian retailers; the average increase in revenue for a small and medium-sized enterprise accepting the option was $18,576, the study found, while 60 per cent of retailers said revenue would fall if they stopped accepting it.

It finds 0.01 per cent of active buy now, pay later accounts were subject to external dispute resolution: 767 complaints in 2021, from 5.9 million active accounts.

Just 0.34 per cent of active buy now, pay later accounts are under hardship arrangements.